Insight Enterprises Inc (NSIT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.56 | 3.16 | 3.18 | 3.08 | 3.05 | |
| DSO | days | 142.58 | 115.33 | 114.68 | 118.48 | 119.72 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.56
= 142.58
Insight Enterprises Inc.'s Days Sales Outstanding (DSO) have shown some fluctuations over the past five years. In 2023, the DSO increased to 141.94 days from 114.50 days in 2022, indicating that it took the company longer to collect on its sales from customers. This upward trend is a cause for concern as it may signify potential issues with credit terms, collection procedures, or customer payment patterns.
Comparing to previous years, the DSO in 2023 is noticeably higher than the levels seen in 2021, 2020, and 2019, suggesting a deterioration in the company's efficiency in collecting receivables. It is crucial for the company to closely monitor and manage its accounts receivable to ensure timely collections and maintain healthy cash flow.
Overall, a high DSO can tie up valuable resources and negatively impact liquidity. Insight Enterprises Inc. should implement strategies to improve their receivables management efficiency and work towards reducing the DSO metric in order to enhance their financial performance.
Peer comparison
Dec 31, 2023