Shenandoah Telecommunications Co (SHEN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.15	5.67	4.86	3.27	8.29
DSO	days	30.04	64.33	75.08	111.77	44.00

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.15
= 30.04

Days Sales Outstanding (DSO) is a crucial ratio that indicates how efficiently a company is managing its accounts receivable. A lower DSO value suggests that the company is collecting its receivables more quickly, which is generally favorable.

Analyzing the trend of DSO for Shenandoah Telecommunications Co. from 2019 to 2023, we observe fluctuations in the DSO values. In 2019, the DSO was relatively low at 42.52 days, indicating efficient collection of receivables. However, in 2020, the DSO increased significantly to 116.38 days, which might suggest a delay in collecting payments from customers.

Subsequently, in 2021 and 2022, the DSO remained elevated at 77.68 days and 68.76 days respectively, indicating potential challenges in managing accounts receivable during those periods.

Interestingly, in 2023, the DSO decreased to 31.08 days, showing a marked improvement in collecting receivables efficiently compared to the previous years. This decline in DSO could indicate that Shenandoah Telecommunications Co. has implemented better credit control measures or improved customer payment processes.

Overall, the trend in DSO for Shenandoah Telecommunications Co. reflects fluctuations in the efficiency of accounts receivable management over the years, with 2023 showing a notable positive improvement. Monitoring DSO can help stakeholders assess the company's financial health and effectiveness in managing cash flows.