Verisk Analytics Inc (VRSK)

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 7.20 5.69 5.39 5.17 7.06 5.83 5.28 5.54 5.95 5.76 5.53 5.16 5.82 5.72 5.68 4.89 5.30 5.40 4.90 5.11
DSO days 50.66 64.14 67.67 70.60 51.73 62.65 69.10 65.91 61.38 63.40 66.05 70.71 62.68 63.84 64.27 74.65 68.91 67.57 74.48 71.40

December 31, 2023 calculation

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

To analyze Verisk Analytics Inc's Days of Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuation in the DSO metric. In Q4 2023, the DSO decreased to 48.69 days from 60.45 days in Q3 2023, indicating that the company collected its accounts receivable more efficiently in the most recent quarter. This improvement could be attributed to effective credit control measures or prompt customer payments.

Comparing Q4 2023 to Q4 2022, we note a slight decrease in DSO from 48.87 days to 48.69 days, suggesting consistent performance in managing accounts receivable year-over-year. However, it is essential to monitor the trend to ensure sustainable cash flow management.

On the other hand, in Q2 and Q1 of 2023, the DSO increased to 63.76 days and 66.64 days, respectively, reflecting longer collection periods during those quarters. This trend may indicate potential issues with credit policies, collection processes, or customer payment behavior that could impact cash flows and working capital.

Overall, Verisk Analytics Inc's DSO ratio demonstrates variability, underscoring the need for continuous monitoring and evaluation of its accounts receivable management practices to optimize cash flow efficiency and maintain healthy liquidity levels.