Tidewater Inc (TDW)

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		—	—	290.91	—	—	—	—	—	—	44.11	—	4.81	4.96	5.36	5.36	6.52	7.03	3.79	3.75	3.83
DSO	days	—	—	1.25	—	—	—	—	—	—	8.27	—	75.88	73.55	68.14	68.16	56.01	51.96	96.30	97.30	95.26

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a measure of the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates that a company is collecting payments more quickly, which is generally favorable.

Looking at the DSO trend for Tidewater Inc over the past few quarters, we see some fluctuations. In the most recent quarter, there is no specific DSO data available, suggesting that the company may have improved its collections efficiency, resulting in a quicker turnover of accounts receivable.

In the previous quarter, the DSO was 1.25 days, indicating a very efficient collection process. However, in the quarters before that, DSO ranged from 51.96 days to 97.30 days, showing some inconsistency in the company's collection practices.

It is essential to monitor DSO regularly as high DSO can indicate potential issues with accounts receivable management, such as lax credit policies or trouble collecting payments from customers. On the other hand, a consistently low DSO could signify aggressive collection efforts but also the possibility of overly restrictive credit terms that may drive away customers.

In conclusion, while Tidewater Inc has shown improvement in its collection efficiency in the most recent quarter, it is crucial for the company to maintain a balanced approach to managing its accounts receivable to ensure timely cash inflows and sustainable customer relationships.