TripAdvisor Inc (TRIP)

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 9.08 8.00 6.25 7.00 8.39 8.91 5.96 5.51 5.58 3.60 3.59 3.27 4.72 6.13 8.76 8.11 8.85 7.40 6.13 7.10
DSO days 40.18 45.62 58.38 52.14 43.52 40.95 61.25 66.20 65.36 101.36 101.67 111.68 77.39 59.54 41.68 45.03 41.26 49.35 59.58 51.43

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.08
= 40.18

To analyze TripAdvisor Inc.'s Days of Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection period for accounts receivable. The DSO measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates faster collections, which can improve cash flow and liquidity.

In Q1 2022, the DSO was high at 80.29 days, suggesting a slower collection process, potentially impacting cash flow. However, the DSO improved in Q2 and Q3 2022 to 77.00 days and 54.26 days, respectively, indicating better efficiency in collecting payments.

In Q4 2022, there was a slight increase in DSO to 50.15 days, which then rose in Q1 2023 to 58.82 days and further increased in Q2 2023 to 63.30 days. These increases may signal a lengthening collection period, which could impact working capital and liquidity.

The DSO decreased notably in Q3 2023 to 48.75 days, indicating improved collection efficiency compared to the previous quarter. The most recent data for Q4 2023 shows a further reduction in DSO to 39.19 days, reflecting a significant enhancement in accounts receivable management.

Overall, fluctuations in DSO over the quarters suggest that TripAdvisor Inc. has been actively managing its accounts receivable and collection processes. The recent decrease in DSO is a positive indicator of improved cash flow and working capital management, which could support the company's financial health and operational efficiency.