Proto Labs Inc (PRLB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.86 | 6.10 | 5.99 | 7.44 | 7.98 | |
| DSO | days | 62.25 | 59.85 | 60.92 | 49.09 | 45.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.86
= 62.25
Proto Labs Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers. A lower DSO indicates a faster collection of receivables, which is generally favorable as it improves the company's cash flow and liquidity.
Looking at the trend of Proto Labs Inc's DSO over the past five years, we observe fluctuations in the metric:
- In 2019, the DSO was the lowest at 45.71 days, indicating efficient collection of receivables.
- The DSO increased in 2020 to 49.08 days, suggesting a slight delay in collecting payments from customers.
- In 2021 and 2022, the DSO continued to rise to 60.85 days and 59.99 days, respectively, indicating a potential weakness in the company's accounts receivable management.
- However, there was a slight improvement in 2023, with the DSO decreasing to 54.38 days.
Overall, Proto Labs Inc's DSO trend shows some inconsistency in managing its accounts receivable effectively. The company may need to focus on streamlining its credit policies, improving billing processes, and actively managing collections to reduce DSO and enhance cash flow efficiency.
Peer comparison
Dec 31, 2023