Nexstar Broadcasting Group Inc (NXST)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.10 | 4.51 | 4.28 | 4.55 | 3.19 | |
| DSO | days | 89.09 | 80.87 | 85.25 | 80.20 | 114.54 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.10
= 89.09
Based on the data provided, Nexstar Media Group Inc's Days Sales Outstanding (DSO) has shown some fluctuation over the past five years. The DSO represents the average number of days it takes for the company to collect revenue after making a sale.
In 2023, the DSO stands at 81.02 days, which is higher compared to the previous year's 75.61 days. This increase indicates that Nexstar Media Group Inc took longer to collect its accounts receivable in 2023.
Looking back at 2020 and 2019, the company managed to improve its collection efficiency, with DSO of 73.37 days and 106.15 days respectively. It is worth noting that the DSO significantly decreased from 106.15 days in 2019 to 73.37 days in 2020, indicating an improvement in the company's collection process.
Analyzing the trend over the past five years, although there have been fluctuations in DSO, Nexstar Media Group Inc should aim to keep this metric as low as possible to ensure efficient cash flow management and timely collection of receivables. An increasing DSO may indicate potential issues with collecting payments from customers, credit policies, or operational inefficiencies that need to be addressed to maintain financial health.
Peer comparison
Dec 31, 2023