Paycom Soft (PAYC)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		48.57	61.83	85.73	82.59	48.33	42.88	59.70	63.36	40.72	42.67	33.37	43.99	42.96	37.60	58.16	96.73	55.29	57.19	48.41	159.46
DSO	days	7.52	5.90	4.26	4.42	7.55	8.51	6.11	5.76	8.96	8.55	10.94	8.30	8.50	9.71	6.28	3.77	6.60	6.38	7.54	2.29

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 48.57
= 7.52

The days of sales outstanding (DSO) for Paycom Software Inc have shown some fluctuations over the past eight quarters, ranging from as low as 4.25 days to as high as 8.51 days. Generally, a lower DSO indicates that the company is able to collect its accounts receivable more quickly, which is a positive sign of efficient cash flow management.

In the most recent quarter, Q4 2023, the DSO decreased to 7.51 days from 5.89 days in Q3 2023. Although this is a positive trend, it is still higher compared to the previous year's Q4 2022 DSO of 7.54 days.

Overall, Paycom Software Inc has managed to keep its DSO relatively low, which suggests that the company has been effective in collecting payments from its customers in a timely manner. However, it is important for the company to continue monitoring and managing its DSO to ensure efficient working capital management and sustainable cash flow.