Kelly Services A Inc (KELYA)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		4.17	2.78	2.75	—	0.96	—	—	—	3.45	—	—	—	—	—	—	—	—	—	—	—
DSO	days	87.61	131.21	132.84	—	379.85	—	—	—	105.88	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.17
= 87.61

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. It reflects the average number of days it takes for a company to collect payment after making a sale.

Analyzing the trend of Kelly Services, Inc.'s DSO over the past eight quarters, we observe a fluctuating pattern. In Q4 2023, the DSO improved to 87.60 days compared to the previous quarter's 104.75 days. This signifies that the company was able to collect payments from customers more quickly during this period.

However, it is important to note that in Q4 2023, the DSO was still higher than the levels observed in Q1 and Q2 of the same year, indicating that there may be room for further improvement in the collection process.

Looking back at the previous year, there has been a general downward trend in DSO from Q1 2022 to Q4 2022, suggesting that the company made progress in managing its accounts receivable during that period.

Overall, while the latest quarter showed an improvement in DSO for Kelly Services, Inc., it is essential for the company to continue monitoring and optimizing its accounts receivable processes to ensure timely collection of payments and maintain healthy cash flow levels.