IAC Inc. (IAC)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 9.08 | 8.13 | 8.77 | 9.09 | 9.28 | 8.61 | 8.76 | 7.53 | 7.14 | 5.34 | 9.65 | 11.62 | 9.79 | 10.24 | ||||
| DSO | days | 40.20 | 44.87 | 41.62 | 40.14 | 39.32 | 42.38 | 41.66 | 48.45 | 51.09 | 68.39 | 37.82 | 31.41 | 37.27 | 35.66 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.08
= 40.20
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates that the company is efficient in collecting payments from its customers, while a higher DSO suggests a longer collection period, which can impact the company's cash flow and liquidity.
Analyzing the DSO trend of IAC Inc. over the past few quarters, we can observe fluctuations in the collection period. From Dec 31, 2020, to Dec 31, 2021, the DSO decreased from 35.66 days to 37.82 days, indicating slightly slower collections. However, in the subsequent quarters, the DSO improved significantly, reaching a low of 31.41 days by Jun 30, 2021, suggesting better efficiency in collecting revenue.
The trend continued to show relatively low DSO figures until Jun 30, 2022, when it increased to 48.45 days, which could be a cause for concern as it indicates a longer collection period for the company. It is essential for management to monitor and address the reasons behind this increase to maintain healthy cash flow and working capital.
The DSO then fluctuated in a range between 40.14 days and 44.87 days until Mar 31, 2024. It is important for IAC Inc. to analyze the DSO in conjunction with other financial metrics to assess the overall effectiveness of its credit and collection policies and maintain a balance between sales growth and timely cash inflows.
Peer comparison
Mar 31, 2024