SolarWinds Corp (SWI)

Days of sales outstanding (DSO)

		Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		8.74	7.46	7.35	8.13	8.69	6.71	7.16	7.65	8.48	7.22	7.47	8.52	7.05	6.05	6.15	6.54	7.91	7.22	7.58	8.80
DSO	days	41.75	48.92	49.69	44.87	42.01	54.43	50.97	47.70	43.04	50.54	48.87	42.86	51.78	60.36	59.36	55.77	46.12	50.56	48.16	41.46

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.74
= 41.75

Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect on its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as a positive sign of efficiency.

Analyzing the DSO trend of SolarWinds Corp over the past few quarters, we can observe fluctuations in the collection period. The DSO for the most recent quarter, Jun 30, 2024, was 41.75 days, which is lower compared to the prior quarter. This suggests that the company improved its efficiency in collecting payments from customers.

Looking back at the historical data, we notice that SolarWinds Corp has experienced some variability in its DSO over the past few quarters. There were periods where the DSO was relatively high, such as in Mar 31, 2021, and Jun 30, 2021. Conversely, there were also quarters with lower DSO figures, like Dec 31, 2020, and Sep 30, 2019.

Overall, it is important for SolarWinds Corp to closely monitor its DSO and strive to maintain a reasonable level to ensure healthy cash flows and working capital management. Efforts to shorten the collection period can lead to improved liquidity and financial health for the company.