VeriSign Inc (VRSN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 237.00 | 229.82 | 251.25 | 272.53 | 75.82 | |
| DSO | days | 1.54 | 1.59 | 1.45 | 1.34 | 4.81 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 237.00
= 1.54
Verisign Inc.'s Days Sales Outstanding (DSO) measures the average number of days it takes the company to collect revenue after a sale is made. A lower DSO indicates an efficient collections process and faster conversion of sales into cash.
From 2019 to 2021, the DSO of Verisign Inc. declined, suggesting an improvement in its accounts receivable management and faster collection of payments from customers. However, there was a slight increase in DSO in 2023 compared to 2021, indicating a potential slowdown in collections efficiency.
Verisign Inc. should continue monitoring and working on optimizing its accounts receivable process to ensure timely collection of revenues, which is essential for maintaining healthy cash flows and liquidity.
Peer comparison
Dec 31, 2023