RPC Inc (RES)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		3.72	4.40	4.13	4.25	2.84	2.71	2.89	2.85	2.18	2.60	2.79	2.03	2.20	3.70	5.54	4.00	4.83	6.71	7.35	7.75
DSO	days	98.14	82.89	88.39	85.97	128.53	134.59	126.42	127.94	167.35	140.17	130.84	179.85	165.81	98.62	65.85	91.22	75.52	54.36	49.66	47.08

December 31, 2023 calculation

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

The Days of Sales Outstanding (DSO) metric for RPC, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's DSO stood at 85.12 days, showing a slight increase from the previous quarter at 83.42 days. Despite this uptick, the current DSO value is relatively lower compared to the levels seen in Q3 2022 and Q4 2022 where it exceeded 120 days.

It is notable that there was a general declining trend in DSO from Q2 2022 to Q4 2022, followed by a consistent increase in the first two quarters of 2023. This fluctuation in DSO may indicate changes in the company's accounts receivable management efficiency and collection practices. A decrease in DSO implies that RPC, Inc. is collecting payments from its customers more rapidly, which is a positive indication of liquidity and effective credit control.

Conversely, an increase in DSO suggests potential issues in collecting receivables promptly, which could lead to cash flow problems. Monitoring DSO trends provides insights into the company's ability to manage working capital effectively. It would be beneficial for RPC, Inc. to continue monitoring and addressing factors influencing DSO to optimize cash flow and maintain financial stability.