Perdoceo Education Corp (PRDO)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	—	—	—	11.48
DSO	days	—	—	—	—	31.79

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Perdoceo Education Corporation's Days Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect outstanding receivables from customers. In 2019, the DSO was at its highest level at 32.80 days, gradually decreasing to 25.25 days in 2020, 23.56 days in 2021, and further down to 24.16 days in 2022. Notably, by the end of 2023, the DSO has significantly decreased to a mere 17.45 days, reflecting a remarkable efficiency in converting sales into cash.

The decreasing trend in DSO suggests that Perdoceo Education Corporation has been successful in managing its accounts receivable effectively, potentially through improved credit policies, timely invoicing, and efficient collection practices. A lower DSO indicates that the company is collecting cash more quickly from its customers, which can enhance liquidity and working capital management.

Overall, the declining trend in DSO for Perdoceo Education Corporation is a positive indicator of the company's financial health and efficiency in managing its receivables, showcasing improved cash flow management and potentially strengthening its overall financial position.