SolarWinds Corp (SWI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.30 | 7.11 | 7.47 | 6.15 | 5.44 | |
| DSO | days | 49.99 | 51.34 | 48.87 | 59.36 | 67.12 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.30
= 49.99
To analyze SolarWinds Corp's Days Sales Outstanding (DSO) over the past five years, we observe a declining trend from 67.12 days in 2019 to 49.99 days in 2023. This indicates that the company has been improving its ability to collect accounts receivable more efficiently over time.
In 2020, the DSO was relatively higher at 59.36 days, possibly due to external factors impacting collections or changes in the company's credit policies. However, the decrease in DSO over the subsequent years suggests a positive shift towards faster collection of sales revenue.
The decreasing trend in DSO indicates that SolarWinds Corp has been managing its accounts receivable more effectively, potentially improving cash flow and liquidity. Lower DSO values are generally favorable as they reflect quicker conversion of sales into cash.
Overall, the decreasing DSO trend for SolarWinds Corp indicates an improvement in the company's credit and collection processes, which could positively impact its financial health and operational efficiency.
Peer comparison
Dec 31, 2023