RPC Inc (RES)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.72	2.84	2.18	2.20	3.80
DSO	days	98.14	128.53	167.35	165.82	96.14

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.72
= 98.14

Based on the data provided, RPC, Inc.'s days of sales outstanding (DSO) have fluctuated over the past five years. In 2023, the DSO stands at 85.12 days, showing an improvement from 104.59 days in 2022. This indicates that the company is collecting its accounts receivable more efficiently compared to the previous year.

Comparing the DSO to prior years, it is evident that RPC, Inc.'s DSO was the highest in 2020 at 149.29 days, signifying a prolonged collection period. Subsequently, the DSO decreased in 2021 to 133.83 days before experiencing a significant drop to 79.64 days in 2019, suggesting improved collection efficiency during that period.

Overall, the trend in RPC, Inc.'s DSO implies that the company has made some progress in managing its receivables and collecting payments from customers more promptly in recent years. However, it would be essential for the company to continue monitoring and controlling its DSO to ensure timely cash inflows and maintain healthy liquidity levels.