Interpublic Group of Companies Inc (IPG)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 1.36 | 1.49 | 1.36 | 1.40 | 1.43 | |
| DSO | days | 268.09 | 245.13 | 268.20 | 260.51 | 255.09 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.36
= 268.09
Interpublic Group Of Cos., Inc.'s Days Sales Outstanding (DSO) has fluctuated over the past five years. The DSO was relatively high at 268.09 days as of December 31, 2023, compared to the previous year's 245.13 days. This increase suggests that the company took longer to collect its accounts receivable in 2023, which may raise concerns about its cash flow and liquidity.
Looking back over the previous years, the DSO was also high in 2021 at 268.20 days but showed a slight improvement in 2022 at 245.13 days. In 2020 and 2019, the DSO was 260.51 days and 255.09 days, respectively, indicating relatively stable collection periods.
Overall, the increasing trend in DSO, especially in 2023, should prompt further investigation into the company's credit policies, collection processes, and customer payment behavior. Management may need to focus on improving efficiency in accounts receivable management to enhance cash flows and working capital management.
Peer comparison
Dec 31, 2023