Progyny Inc (PGNY)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.80 | 2.78 | 3.17 | 3.75 | 4.13 | |
| DSO | days | 95.93 | 131.12 | 115.28 | 97.41 | 88.31 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.80
= 95.93
Progyny Inc's Days Sales Outstanding (DSO) is a metric used to evaluate how long it takes the company to collect payment from its customers after making a sale. A lower DSO indicates that the company is collecting receivables more quickly, which is generally viewed favorably.
Looking at the trend of Progyny Inc's DSO over the past five years, we observe fluctuations in the metric. In 2019, the DSO was 74.78 days, showing a relatively efficient collection of receivables. However, in 2020, there was a decrease to 80.08 days, indicating a slight delay in collecting payments.
In 2021, the DSO increased significantly to 98.10 days, suggesting a longer collection period compared to the previous year. The trend continued in 2022 with a further increase to 111.35 days, indicating potential challenges in collecting payments promptly.
In the most recent year, 2023, there was a notable improvement in DSO, decreasing to 81.10 days. This reduction could signal enhanced collection efforts or more efficient credit management by the company.
Overall, while Progyny Inc experienced fluctuations in its DSO over the past five years, the recent improvement in 2023 is a positive sign. It is important for the company to continue monitoring and managing its DSO effectively to ensure timely collection of receivables and maintain healthy working capital levels.
Peer comparison
Dec 31, 2023