Ziff Davis Inc (ZD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.13 | 4.04 | 4.56 | 4.48 | 3.56 | |
| DSO | days | 171.37 | 90.37 | 79.96 | 81.50 | 102.56 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.13
= 171.37
Based on the provided data, Ziff Davis Inc's Days Sales Outstanding (DSO) has fluctuated over the years. As of December 31, 2020, the DSO stood at 102.56 days, indicating that on average, it took the company about 102.56 days to collect its accounts receivable.
By December 31, 2021, the DSO had improved to 81.50 days, suggesting the company was able to collect its receivables more efficiently. This trend continued in 2022 and 2023, with DSO decreasing to 79.96 days and then increasing slightly to 90.37 days, respectively.
However, there was a significant spike in DSO by December 31, 2024, where it rose sharply to 171.37 days. This substantial increase may indicate challenges in collecting receivables promptly, potentially impacting the company's cash flow and liquidity.
Overall, while the company showed improvements in collecting receivables efficiently in earlier years, the sharp increase in DSO in 2024 raises concerns about its ability to manage accounts receivable effectively. Further analysis and actions may be necessary to address the reasons behind this spike and improve the company's cash flow management.