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.
Peer comparison
Mar 31, 2024