SPS Commerce Inc (SPSC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.26 | 11.46 | 11.43 | 11.15 | 9.31 | |
| DSO | days | 29.78 | 31.84 | 31.92 | 32.74 | 39.20 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.26
= 29.78
The Days Sales Outstanding (DSO) of SPS Commerce Inc has shown a consistent improvement over the years, indicating the company's efficient management of accounts receivable. From 39.20 days on December 31, 2020, the DSO decreased to 32.74 days on December 31, 2021, and continued to decline to 31.92 days on December 31, 2022, 31.84 days on December 31, 2023, and finally to 29.78 days on December 31, 2024. This downward trend in DSO suggests that SPS Commerce Inc has been successful in collecting payments from its customers more quickly. A lower DSO typically signifies a shorter time frame for converting sales into cash, reflecting strong liquidity and efficient credit management practices within the company.
Peer comparison
Dec 31, 2024