Liquidity Services Inc (LQDT)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		40.46	23.78	43.99	38.92	34.01
DSO	days	9.02	15.35	8.30	9.38	10.73

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 40.46
= 9.02

Based on the provided data, Liquidity Services Inc's days of sales outstanding (DSO) have fluctuated over the past five years. In Sep 30, 2023, the DSO decreased to 9.11 days from 15.37 days in Sep 30, 2022. This indicates that the company collected its accounts receivable more quickly in 2023 compared to 2022, demonstrating a more efficient management of its receivables.

Looking back at Sep 30, 2021, the DSO was 8.31 days, showing a slight increase compared to the DSO in 2023. However, it still reflects the company's ability to collect payments from customers in an efficient manner.

In Sep 30, 2020, the DSO was 9.43 days, slightly higher than that of 2023, but still demonstrating a reasonable management of receivables. Additionally, in Sep 30, 2019, the DSO was 10.80 days, indicating a longer period for the company to collect payments compared to the more recent years.

Overall, the trend in the DSO for Liquidity Services Inc. shows that the company has been improving its accounts receivable management over the years, with a significant reduction in the number of days needed to collect sales outstanding from 2022 to 2023. This indicates potential improvements in the company's credit and collection policies or the effectiveness of its sales force in collecting from customers.