Parsons Corp (PSN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.56 | 4.46 | 4.75 | 4.39 | 4.41 | |
| DSO | days | 80.09 | 81.83 | 76.76 | 83.12 | 82.69 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.56
= 80.09
The Days Sales Outstanding (DSO) ratio for Parsons Corp has shown some fluctuation over the past five years. In 2023, the DSO decreased to 80.09 days compared to 81.83 days in 2022, indicating an improvement in the company's ability to collect its accounts receivable efficiently. However, this improvement follows a trend where DSO has been relatively stable around the 80-day mark over the past few years.
A lower DSO suggests that the company is able to collect payments from its customers more quickly, which can improve cash flow and overall liquidity. Conversely, a higher DSO may indicate potential issues with collections, credit terms, or the quality of accounts receivable.
Overall, while the slight decrease in DSO in 2023 is a positive sign, further analysis of the company's credit policies, customer base, and industry norms would be beneficial to understand the underlying factors influencing this ratio.
Peer comparison
Dec 31, 2023