EchoStar Corporation (SATS)
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 | 4.89 | 7.77 | 8.01 | 7.44 | 8.47 | 7.93 | 8.50 | 9.19 | 9.98 | 10.04 | 10.62 | 10.20 | 9.89 | 9.58 | 9.98 | 10.26 | 10.30 | 9.48 | 9.89 | 8.98 | |
| DSO | days | 74.71 | 47.00 | 45.54 | 49.08 | 43.08 | 46.02 | 42.96 | 39.70 | 36.57 | 36.37 | 34.36 | 35.77 | 36.91 | 38.10 | 36.56 | 35.58 | 35.43 | 38.48 | 36.90 | 40.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.89
= 74.71
The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it suggests efficient management of accounts receivable.
Analyzing the DSO trend for EchoStar Corporation over the past few quarters, we observe some fluctuations. The DSO has ranged from a high of 74.71 days in December 2023 to a low of 34.36 days in June 2021. This variability in DSO could indicate changes in the company's credit policies, customer payment behavior, or the efficiency of its collection process.
In the most recent quarter, December 2023, the DSO increased to 74.71 days compared to 47.00 days in September 2023. This jump might suggest delays in collecting payments from customers, which could potentially impact the company's cash flow and liquidity position.
It is essential for EchoStar Corporation to closely monitor its DSO and implement strategies to streamline its accounts receivable processes to ensure timely collections. By improving DSO, the company can enhance its working capital management and financial performance.
Peer comparison
Dec 31, 2023