Xpel Inc (XPEL)

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
Receivables turnover		15.94	15.25	14.78	15.72	21.87	17.47	14.89	18.35	18.77	15.66	17.05	18.40	15.92	16.65	19.23	18.21
DSO	days	22.90	23.94	24.70	23.22	16.69	20.89	24.52	19.89	19.44	23.30	21.41	19.84	22.92	21.92	18.98	20.04

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.94
= 22.90

XPEL Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payments from its customers. Looking at the trend over the past eight quarters, we can observe that the DSO has fluctuated within a range of 16.59 to 24.57 days.

In the most recent quarter, Q4 2023, the DSO was 22.85 days, a slight improvement compared to the previous quarter but still higher than the levels seen in Q4 2022. This indicates that XPEL Inc is managing its accounts receivable slightly more efficiently, but payment collections could still be enhanced.

While the DSO has seen some variability, it is important for XPEL Inc to monitor this metric closely to ensure timely collection of receivables, as a lower DSO typically signifies better liquidity and working capital management. Further analysis of the underlying reasons for changes in DSO could provide insights into the company's credit policies, sales terms, and overall efficiency in managing accounts receivable.