Shutterstock (SSTK)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.61	12.29	16.14	15.28	13.85
DSO	days	38.00	29.70	22.61	23.90	26.36

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.61
= 38.00

Shutterstock Inc's Days of Sales Outstanding (DSO) have exhibited fluctuations over the past five years. The trend indicates an increase in DSO from 2019 to 2020, followed by a decrease in subsequent years. In 2021, the DSO decreased significantly to 22.51 days, indicating the company's ability to collect revenue more efficiently. However, there was an uptick in DSO in 2022 to 29.65 days, suggesting a potential delay in receivables collection compared to the previous year.

Notably, in 2023, the DSO further increased to 38.04 days, indicating a prolonged period for the company to collect outstanding sales. This rise may raise concerns about the company's credit policies, receivables management, or customer payment behavior. It is essential for Shutterstock Inc to closely monitor and manage its DSO to ensure timely collection of sales and maintain healthy cash flows. The company may consider implementing strategies to improve its receivables turnover and streamline its collection processes to enhance its overall financial performance.