Strategic Education Inc (STRA)

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		14.90	10.49	11.74	14.85	16.98	13.12	14.20	16.89	21.61	12.58	13.45	15.90	19.13	21.09	24.04	23.83	18.88	16.25	15.12	14.68
DSO	days	24.50	34.81	31.09	24.58	21.49	27.82	25.70	21.61	16.89	29.01	27.13	22.96	19.08	17.31	15.18	15.32	19.34	22.46	24.13	24.86

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.90
= 24.50

To analyze Strategic Education Inc's Days Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the company's collection efficiency. DSO measures the average number of days it takes for a company to collect payment after a sale has been made.

In Q4 2023, the DSO decreased significantly to 24.52 days compared to the previous quarter's 34.93 days. This implies that the company improved its collection process and managed to collect payments more efficiently.

Q3 2023 saw an increase in DSO to 34.93 days from 31.20 days in Q2 2023. This rise may indicate delays in customer payments or a decrease in collection efficiency during that period.

In Q1 2023, DSO was relatively stable at 24.67 days, continuing the trend of efficient collection seen in Q4 2022 (21.57 days).

Throughout 2022, DSO fluctuated within a range, with the highest point at 27.92 days in Q3 and the lowest at 21.50 days in Q1. This shows variations in the company's collection performance during that period.

Overall, a decreasing trend in DSO indicates improved collection efficiency, while an increasing trend suggests potential issues in collecting payments promptly. Strategic Education Inc should continue to monitor its DSO and implement strategies to manage and accelerate its accounts receivable collections effectively.