NV5 Global Inc (NVEE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.36 | 7.74 | 6.57 | 6.60 | 3.87 | |
| DSO | days | 43.64 | 47.19 | 55.58 | 55.34 | 94.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.36
= 43.64
The days sales outstanding (DSO) for NV5 Global Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect payments from its customers.
As of December 31, 2023, the DSO stands at 43.64 days, down from 47.19 days in 2022, 55.58 days in 2021, 55.34 days in 2020, and 94.40 days in 2019. This reduction in DSO suggests that NV5 Global Inc has become more efficient in converting its accounts receivable into cash, which is a positive sign for the company's liquidity and working capital management.
A lower DSO indicates that NV5 Global Inc is collecting payments from its customers more quickly, potentially improving its cash flow and reducing the risk of bad debt. However, it is important for the company to monitor DSO consistently to ensure efficient credit and collections practices are maintained and to avoid any potential liquidity problems in the future.
Peer comparison
Dec 31, 2023