Verra Mobility Corp (VRRM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		0.44	0.48	0.21	0.83	3.42
DSO	days	827.79	752.96	1,735.55	441.20	106.79

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 0.44
= 827.79

The Days Sales Outstanding (DSO) ratio for Verra Mobility Corp has shown some fluctuations over the past five years. In 2023, the DSO stands at 104.90 days, which is comparable to the DSO of 2022 at 95.76 days. This suggests that the company is collecting its accounts receivable efficiently, with customers taking approximately 104.90 days to pay their outstanding balances, consistent with the previous year.

When comparing the current DSO to previous years, we observe improvements in DSO efficiency. In 2021, the DSO was 126.01 days, indicating a decrease in the time taken to collect receivables from customers compared to 2020, where the DSO was significantly higher at 169.55 days. The DSO in 2019 was around 92.33 days, showing that the company has managed to maintain a relatively stable collection period over the past few years.

Overall, the trend in DSO for Verra Mobility Corp indicates effective management of accounts receivable and timely collection from customers. The company has made progress in reducing the time it takes to convert credit sales into cash, which is favorable for maintaining healthy cash flows and liquidity.