Verisk Analytics Inc (VRSK)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		7.20	7.06	5.95	5.78	5.30
DSO	days	50.66	51.72	61.39	63.15	68.89

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.20
= 50.66

Verisk Analytics Inc's Days Sales Outstanding (DSO) has shown a generally decreasing trend over the past five years from 65.45 days in 2019 to 48.69 days in 2023. This indicates that the company has been able to collect its accounts receivable more efficiently over time.

The decline in DSO can be seen as a positive trend as it suggests that Verisk Analytics is improving its collection processes or experiencing faster sales turnover. A lower DSO means that the company is converting its sales into cash more quickly, which can improve liquidity and cash flow.

Overall, the decreasing DSO trend for Verisk Analytics over the past five years reflects a positive aspect of the company's financial management and operational efficiency in managing its accounts receivable. This trend is generally favorable as it indicates effective credit and collection policies, which can contribute to the company's financial health and stability.