Pegasystems Inc (PEGA)

Days of sales outstanding (DSO)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		3.87	2.77	3.91	4.09	3.68	2.56	3.37	3.10	2.91	5.16	3.57	3.00	3.12	6.63	3.12	2.89	2.75	1.90	2.87	2.60
DSO	days	94.42	131.64	93.32	89.25	99.21	142.32	108.21	117.81	125.22	70.67	102.18	121.70	117.14	55.04	117.14	126.30	132.90	192.37	127.15	140.62

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.87
= 94.42

The analysis of Pegasystems Inc.'s Days of Sales Outstanding (DSO) over the specified periods reveals notable fluctuations in the company's receivables collection efficiency. At the end of June 2020, the DSO was approximately 140.62 days, indicating that it took roughly 141 days on average to collect receivables, with some variation in subsequent quarters.

Between June and September 2020, a decrease occurred, bringing DSO down to approximately 127.15 days, reflecting an improvement in collection efforts or possibly favorable changes in customer payment terms. However, a significant increase was observed at the end of December 2020, with DSO rising sharply to approximately 192.37 days. This peak suggests delays in receivable collections, potentially attributable to seasonal factors, customer credit issues, or systemic collection inefficiencies.

Throughout 2021, the DSO demonstrated considerable volatility, decreasing to around 55.04 days at year-end, indicating a substantial improvement in collection efficiency. This reduction persisted into the first quarter of 2022, with the DSO remaining near 117.14 days but increasing again in subsequent quarters. Notably, the DSO declined to approximately 102.18 days by September 2022, continuing a trend of improved receivables management before rising again to about 70.67 days by the end of 2022.

In 2023, the DSO exhibited a pattern of fluctuation, rising to approximately 125.22 days in the first quarter before declining slightly to around 117.81 days in mid-2023. However, a significant increase occurred by the end of September 2023, with DSO reaching approximately 108.21 days, and further rising to about 142.32 days by year-end, indicating a deterioration in receivables collection efficiency in this period.

In the period extending into 2024, the DSO improved notably, decreasing to approximately 99.21 days in the first quarter, reaching a low of around 89.25 days by June 2024. Nonetheless, a slight uptick was observed in September 2024, with DSO rising to approximately 93.32 days, before increasing again to roughly 131.64 days at the close of December 2024. The subsequent quarter showed some improvement, with the DSO decreasing to around 94.42 days.

Overall, the DSO trend for Pegasystems Inc. indicates periods of both improvement and deterioration in receivables management, with significant fluctuations likely influenced by seasonal factors, operational changes, or shifting credit policies. The highest DSO period corresponds with the December 2020 quarter, while the lowest appears around the end of 2021. Recent trends suggest variable collection efficiency, highlighting areas for potential operational or credit management review.