Teradata Corp (TDC)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.85	5.10	6.11	5.73	4.82
DSO	days	53.30	71.61	59.77	63.66	75.80

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.85
= 53.30

The days of sales outstanding (DSO) for Teradata Corp have shown a decreasing trend over the past five years. In particular, the DSO decreased from 76.50 days in 2019 to 56.95 days in 2023. This indicates that the company is collecting its accounts receivable more efficiently and quickly over the years. A lower DSO value suggests that the company is able to convert its sales into cash more promptly, which can improve its cash flow and working capital management. This decreasing trend in DSO reflects positively on Teradata Corp's accounts receivable management and efficiency in collecting payments from customers.