TechTarget Inc (TTGT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.29 | 4.94 | 4.70 | 3.68 | 4.92 | |
| DSO | days | 58.07 | 73.84 | 77.66 | 99.06 | 74.23 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.29
= 58.07
Techtarget Inc.'s Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers after making sales. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
In the past five years, Techtarget's DSO has fluctuated. In 2023, the DSO decreased to 62.28 days from 74.06 days in 2022, indicating a relatively efficient collections process. This improvement suggests that the company managed to collect payments faster compared to the previous year.
Comparing 2023 to 2021, the DSO decreased from 70.80 days to 62.28 days, showing further improvement in collections efficiency. However, it is interesting to note that the company experienced a spike in DSO in 2020, with 98.85 days, which could indicate difficulties in collecting payments during that period.
Overall, Techtarget Inc. has shown some variability in its DSO over the years, but the recent decrease in DSO is a positive sign of effective collections management and improved liquidity. However, continued monitoring of the trend in DSO is necessary to ensure the company maintains efficient collections processes.
Peer comparison
Dec 31, 2023