N-Able Inc (NABL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Receivables turnover		8.76	8.72	8.55
DSO	days	41.69	41.88	42.71

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.76
= 41.69

Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect payment from its customers after making a sale. In the case of N-Able Inc, the DSO for the years ending December 31, 2021, 2022, and 2023 were 42.71 days, 41.88 days, and 41.69 days, respectively.

A decreasing trend in DSO over the three-year period is generally a positive indicator, as it suggests that N-Able Inc is becoming more efficient in collecting its accounts receivable. This improvement could be due to enhanced credit control policies, better customer payment terms, or more effective collection efforts.

A lower DSO indicates that the company is converting its sales into cash more quickly, which can improve cash flow and liquidity. It also suggests that N-Able Inc is managing its accounts receivable effectively and may have a lower risk of bad debts or cash flow disruptions due to delayed payments.

Overall, the decreasing trend in DSO for N-Able Inc is a positive sign of improving efficiency in managing its accounts receivable, which can have a favorable impact on the company's financial health and operational performance.