Robert Half International Inc (RHI)

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		7.45	7.09	7.12	7.09	7.12	6.61	6.56	6.42	6.56	5.96	6.03	6.25	7.16	7.74	8.58	7.17	7.30	7.06	7.05	7.11
DSO	days	48.97	51.51	51.27	51.50	51.29	55.18	55.64	56.87	55.62	61.22	60.55	58.36	51.01	47.15	42.56	50.94	50.01	51.69	51.79	51.32

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.45
= 48.97

The Days of Sales Outstanding (DSO) is a key metric used to evaluate how efficient a company is in collecting accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally preferred as it improves cash flow.

Looking at the DSO trend for Robert Half Inc over the past eight quarters, we can observe a slight decrease in DSO from Q4 2022 to Q4 2023. This suggests that the company has been able to improve its accounts receivable collection efficiency over this period.

The DSO values have ranged between 49.15 days and 56.87 days over the past eight quarters, indicating some stability in the company's collection process. However, it is worth noting that the DSO values in Q4 2023 and Q1 2023 are relatively lower compared to the values in the preceding quarters, which may reflect improved credit policies or more timely collection efforts by Robert Half Inc.

Overall, based on the DSO data provided, Robert Half Inc appears to be managing its accounts receivable efficiently, with a trend towards lower DSO values in the most recent quarters. This suggests that the company is effective in converting its credit sales into cash, which is a positive indicator of its financial health and liquidity position.