Shenandoah Telecommunications Co (SHEN)

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		12.28	12.81	14.89	13.96	5.67	5.16	5.63	5.66	4.78	9.80	3.65	5.17	6.13	7.89	6.49	8.74	8.28	9.70	9.64	13.10
DSO	days	29.73	28.49	24.51	26.16	64.33	70.73	64.83	64.48	76.28	37.24	99.88	70.55	59.52	46.27	56.20	41.76	44.10	37.63	37.88	27.87

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.28
= 29.73

Days of Sales Outstanding (DSO) is a crucial metric that measures the average number of days it takes for a company to collect revenue from its credit sales. Lower DSO values are generally preferable as they indicate a quicker conversion of accounts receivable into cash.

In the case of Shenandoah Telecommunications Co., the DSO has shown a decreasing trend over the past eight quarters. In Q4 2023, the DSO stood at 31.08 days, which was slightly higher than the previous quarter but significantly lower than the values reported in the same quarter of the previous year.

The decreasing trend in DSO indicates that Shenandoah Telecommunications Co. has been improving its accounts receivable collection efficiency. The company has been able to speed up the collection of cash from its credit sales, which is a positive sign for its cash flow management.

Overall, the declining DSO trend for Shenandoah Telecommunications Co. suggests that the company has been effectively managing its accounts receivable and working capital, which bodes well for its financial health and liquidity position. It indicates that the company is collecting its outstanding receivables more promptly, which could potentially lead to improved cash flows and better overall financial performance.