Liveramp Holdings Inc (RAMP)

Days of sales outstanding (DSO)

		Mar 31, 2025	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
Receivables turnover		4.00	3.36	3.68	3.27	3.32	3.17	3.56	3.52	3.20	2.94	3.05	3.01	2.96	2.31	2.49	2.51	2.34	2.63	2.90	2.92
DSO	days	91.14	108.79	99.13	111.52	110.02	115.00	102.65	103.84	113.97	124.11	119.83	121.40	123.38	158.31	146.70	145.69	155.74	138.99	125.74	125.11

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.00
= 91.14

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable.

Analyzing Liveramp Holdings Inc's DSO from June 30, 2020, to March 31, 2025, reveals some fluctuations in the trend. Initially, the DSO was around 125 days in mid-2020, but it increased to 155.74 days by March 31, 2021. This suggests that the company was taking longer to collect payments from customers during this period.

However, from March 31, 2021, onward, there was a general downward trend in DSO, indicating improvement in accounts receivable management. The DSO decreased to 91.14 days by March 31, 2025, reflecting that Liveramp Holdings Inc was more efficient in collecting outstanding receivables and converting them into cash.

Overall, the decreasing trend in DSO over the analyzed period is a positive sign, as it indicates that Liveramp Holdings Inc has been speeding up its collections process and managing its accounts receivable effectively. It suggests that the company may have implemented better credit policies, improved collection procedures, or enhanced customer relationships, all of which are beneficial for its financial health and cash flow management.