Pool Corporation (POOL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 38.03 | 48.19 | 34.11 | 32.20 | 41.74 | |
| DSO | days | 9.60 | 7.57 | 10.70 | 11.34 | 8.74 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 38.03
= 9.60
The days of sales outstanding (DSO) is a metric used to evaluate how long it takes a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly.
Pool Corporation's DSO has exhibited variability over the past five years. In 2023, the DSO was 22.59 days, showing an increase from the previous year's 20.76 days. This increase could suggest a slower collection of accounts receivable compared to the prior year.
Comparing 2023 to 2021 and 2020, the DSO has improved, indicating that Pool Corporation may be more efficient in collecting payments from customers in recent years. However, the 2023 DSO is still higher than the levels recorded in 2019 and 2022, signifying a potential deterioration in receivables management.
Overall, Pool Corporation should continue to monitor its DSO closely to ensure timely collection of receivables and maintain healthy cash flow levels. Efforts to shorten the DSO could lead to improved liquidity and financial performance.