Pegasystems Inc (PEGA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		2.71	2.56	2.81	2.87	1.90
DSO	days	134.79	142.32	129.86	127.11	192.36

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.71
= 134.79

The Days of Sales Outstanding (DSO) for Pegasystems Inc. demonstrates notable fluctuations over the specified period. At the end of 2020, the DSO was approximately 192.36 days, indicating a relatively extended period to collect receivables. This figure significantly decreased by the end of 2021 to around 127.11 days, reflecting an improvement in receivables collection efficiency. However, in 2022, the DSO experienced a slight increase to approximately 129.86 days, indicating a marginal decline in collection performance relative to the previous year.

By the close of 2023, the DSO rose again to about 142.32 days, suggesting a shorter collection cycle compared to 2022 but still higher than the 2021 figure. This indicates some variability in receivables management, with collection periods lengthening within this interval. In 2024, the DSO decreased again to roughly 134.79 days, implying a modest improvement in the efficiency of receivables collection, though it remains elevated compared to the early 2021 levels.

Overall, the pattern demonstrates a significant reduction in DSO from 2020 to 2021, followed by fluctuations in subsequent years. These variations could reflect changes in credit policies, customer payment behaviors, or broader economic factors affecting receivables collection processes over this period. The DSO trend underscores periods of improved receivables turnover, yet also indicates that Pegasystems Inc. continues to experience some challenges in maintaining consistently optimal collection cycles.