PTC Inc (PTC)

Days of sales outstanding (DSO)

		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	Dec 31, 2019
Receivables turnover		2.59	3.14	2.99	3.00	2.43	3.06	2.89	3.29	2.90	3.91	3.58	3.72	3.24	3.86	3.64	3.51	3.33	4.16	3.63	3.57
DSO	days	140.89	116.29	122.25	121.50	150.13	119.30	126.39	110.94	125.98	93.34	102.07	98.14	112.65	94.59	100.37	104.09	109.46	87.79	100.65	102.20

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.59
= 140.89

The Days Sales Outstanding (DSO) metric for PTC Inc has shown some fluctuations over the past eight quarters. In the most recent quarter, ending September 30, 2024, the DSO was 140.89 days, indicating that on average, it took the company approximately 140.89 days to collect its accounts receivable. This is a significant increase compared to the previous quarter's DSO of 116.29 days.

Looking back over the past two years, the DSO has ranged from a low of 87.79 days in the third quarter of 2020 to a high of 150.13 days in the third quarter of 2023. The trend in DSO suggests some variability in the company's ability to collect its receivables efficiently.

Analyzing the DSO trend can provide insights into PTC Inc's credit and collection policies. A higher DSO could indicate potential issues with credit control or collection procedures, possibly leading to cash flow challenges. On the other hand, a lower DSO may signify effective receivables management, resulting in quicker cash conversion.

It would be beneficial for PTC Inc to closely monitor and manage its DSO over time to ensure timely collection of accounts receivable, improve cash flow, and maintain healthy working capital levels.