Viad Corp (VVI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.38	9.26	5.20	22.68	9.74
DSO	days	38.93	39.44	70.17	16.10	37.47

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.38
= 38.93

Viad Corp.'s days of sales outstanding (DSO) has shown variability over the past five years. In 2023, the DSO decreased to 37.92 days from 39.73 days in 2022, indicating that the company collected its accounts receivable more efficiently during the most recent year. This improvement suggests a tighter control over credit and collection processes or a reduction in outstanding receivables.

Comparing 2023 to 2021, there was a significant improvement in DSO, decreasing from 67.53 days to 37.92 days. This substantial decline indicates a notable enhancement in the company's accounts receivable collection efficiency. The reduction in DSO may signify better credit policies, prompt collection efforts, or improved customer payment behaviors.

In 2023, the DSO was lower compared to 2019 (37.92 days vs. 37.12 days), reflecting a consistent collection efficiency over this period. Maintaining a relatively stable DSO over the years indicates that Viad Corp. has been successful in managing its accounts receivable in a consistent and effective manner.

However, the DSO in 2023 was higher compared to 2020 (37.92 days vs. 15.97 days), suggesting a slight decrease in the efficiency of accounts receivable collection year over year. This increase could be attributed to changes in sales patterns, credit terms, or the aging of receivables.

Overall, analyzing Viad Corp.'s DSO over the past five years shows fluctuations but indicates an overall effectiveness in managing accounts receivable, particularly with the notable improvements seen in 2023 and 2021 compared to previous years.