Parsons Corp (PSN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.36 | 4.30 | 4.21 | 4.04 | 4.56 | 4.09 | 3.79 | 4.28 | 4.46 | 4.29 | 3.98 | 4.36 | 4.76 | 4.48 | 4.51 | 4.37 | 4.39 | 3.87 | 4.19 | 4.09 | |
| DSO | days | 83.68 | 84.84 | 86.80 | 90.29 | 80.06 | 89.28 | 96.34 | 85.30 | 81.78 | 85.06 | 91.82 | 83.65 | 76.74 | 81.49 | 81.00 | 83.53 | 83.18 | 94.36 | 87.01 | 89.21 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.36
= 83.68
The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. It indicates the average number of days a company takes to convert its credit sales into cash.
Based on the data provided for Parsons Corp, we observed fluctuations in the DSO over the quarters analyzed. The DSO ranged from a high of 96.34 days on June 30, 2023, to a low of 76.74 days on December 31, 2021.
A higher DSO could suggest that Parsons Corp is taking longer to collect payments from its customers, which may indicate potential issues with credit policies, collection procedures, or the financial health of its customers.
Conversely, a lower DSO implies that the company is collecting payments more efficiently, which may indicate effective credit management practices or improvements in customer payment behavior.
It would be beneficial for Parsons Corp to closely monitor and analyze the trends in DSO over time to assess the effectiveness of its accounts receivable management and make any necessary adjustments to optimize cash flow and working capital management.
Peer comparison
Dec 31, 2024