Quanta Services Inc (PWR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.69 | 4.62 | 3.80 | 4.11 | 4.39 | |
| DSO | days | 77.79 | 79.06 | 96.06 | 88.83 | 83.23 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.69
= 77.79
Quanta Services, Inc.'s Days Sales Outstanding (DSO) over the past five years has shown varying trends. In 2023, the company's DSO decreased to 77.10 days from 78.55 days in 2022, indicating an improvement in the collection of accounts receivable. This suggests that Quanta Services is becoming more efficient in converting its sales into cash.
Comparing the DSO to previous years, the trend shows fluctuations with a peak of 95.62 days in 2021, followed by a slight decrease in 2022 and a more significant improvement in 2023. The decrease in DSO in 2023 may signify that Quanta Services has become more effective in managing its accounts receivables and collecting payments from customers in a timely manner.
Overall, the declining trend in DSO over the years is a positive sign as it suggests that Quanta Services has been successful in managing its credit and collection policies, improving its cash flow, and potentially reducing the risk of bad debt. This could indicate efficient working capital management and better liquidity for the company.
Peer comparison
Dec 31, 2023