Cactus Inc (WHD)

Days of sales outstanding (DSO)

Mar 31, 2024 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
Receivables turnover 4.75 4.70 4.18 3.65 3.27 4.00 3.79 3.64 3.93 3.87 3.88 3.70 4.09 6.63 8.64 9.89 5.34 5.61 6.24 5.45
DSO days 76.86 77.69 87.42 100.05 111.79 91.28 96.20 100.30 92.80 94.40 93.97 98.76 89.33 55.07 42.24 36.89 68.34 65.11 58.52 67.01

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.75
= 76.86

Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect on its accounts receivable. A lower DSO indicates the company is able to collect payments from customers more quickly, which is generally favorable.

Analyzing the DSO trend of Cactus Inc over the past few quarters reveals fluctuations in the collection period. The DSO has ranged from a low of 36.89 days in June 2020 to a high of 111.79 days in March 2023. The DSO has shown a general increasing trend in recent quarters, with a notable spike in the most recent quarter ending March 31, 2024, at 76.86 days compared to the previous quarter at 77.69 days.

A high DSO could indicate potential issues with collections efficiency, such as customers delaying payments or credit policies being too lax. However, it's important to consider industry norms and seasonal trends when interpreting DSO figures.

Cactus Inc should monitor its DSO closely and consider analyzing the underlying reasons for any significant changes. Implementing effective accounts receivable management strategies can help improve cash flow and overall financial health.