Liveramp Holdings Inc (RAMP)

Days of sales outstanding (DSO)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Receivables turnover		3.32	3.20	2.96	2.46	2.90
DSO	days	110.02	113.97	123.38	148.28	125.74

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.32
= 110.02

Liveramp Holdings Inc's days of sales outstanding (DSO) have shown a declining trend over the past five years, indicating an improvement in the company's ability to collect its accounts receivable efficiently. In particular, the DSO decreased from 148.28 days in 2021 to 110.02 days in 2024, suggesting that the company has been more effective in converting its sales into cash within a shorter timeframe. This could be due to more rigorous credit policies, enhanced collection processes, or better customer relationships.

The decreasing trend in DSO is a positive sign for Liveramp Holdings Inc, as it reflects improved liquidity and working capital management. Lower DSO implies that the company is able to quickly turn its accounts receivable into cash, which can free up capital for other operational needs or investments. It also indicates that the company is effectively managing its credit risks and minimizing the impact of bad debts on its financial performance.

Overall, the decreasing DSO trend for Liveramp Holdings Inc over the past five years suggests that the company has been successful in optimizing its accounts receivable management, which bodes well for its financial health and operational efficiency. However, it is important for the company to continue monitoring and maintaining this trend to ensure sustainable and healthy cash flow generation.