Liquidity Services Inc (LQDT)

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		40.96	40.45	49.82	50.33	35.92	23.78	33.88	41.71	34.50	44.01	44.55	38.69	44.37	38.87	40.66	36.69	37.53	33.97	38.61	34.81
DSO	days	8.91	9.02	7.33	7.25	10.16	15.35	10.77	8.75	10.58	8.29	8.19	9.43	8.23	9.39	8.98	9.95	9.73	10.74	9.45	10.49

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 40.96
= 8.91

The days of sales outstanding (DSO) metric for Liquidity Services Inc has shown variability over the past eight quarters. In Q1 2024, the DSO was at 9.02 days, indicating that on average it takes approximately 9 days for the company to collect its accounts receivable. This figure is slightly lower compared to the previous quarter (Q4 2023) when the DSO was 9.11 days.

Looking further back, in Q3 2023, the DSO decreased significantly to 7.37 days, suggesting an improvement in the company's collection efficiency. This positive trend continued into Q2 2023, with the DSO at 7.28 days, reflecting a relatively stable performance in collecting receivables.

In contrast, Q1 2023 witnessed a higher DSO of 10.18 days, indicating a slight delay in the collection process compared to the recent quarters. The highest DSO in the given period was in Q4 2022 at 15.37 days, which may suggest potential challenges in collecting accounts receivable efficiently during that period.

Overall, Liquidity Services Inc's DSO has exhibited some fluctuations, but the recent quarters have shown improvements or maintained relatively low levels, reflecting effective management of accounts receivable collection. Monitoring DSO trends over time can provide valuable insights into the company's liquidity and operational efficiency.