Paycom Soft (PAYC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 48.53 | 48.35 | 40.71 | 42.88 | 55.21 | |
| DSO | days | 7.52 | 7.55 | 8.97 | 8.51 | 6.61 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 48.53
= 7.52
Paycom Software Inc's Days Sales Outstanding (DSO) is a measure of how efficiently the company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly.
Based on the data provided:
- The DSO has been relatively consistent over the past five years, ranging from 6.59 days in 2019 to 8.96 days in 2021.
- In 2023, the DSO decreased slightly to 7.51 days compared to 7.54 days in 2022, indicating a slight improvement in collecting payments from customers.
- Overall, the trend shows that Paycom Software Inc has been efficient in managing its accounts receivable, with DSO staying within a narrow range over the years.
It is important for Paycom Software Inc to continue monitoring and managing its DSO to ensure timely collections, which can improve cash flow and overall financial health.
Peer comparison
Dec 31, 2023