Ziff Davis Inc (ZD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.04 | 4.56 | 4.48 | 3.56 | 4.01 | |
| DSO | days | 90.37 | 79.96 | 81.50 | 102.56 | 91.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.04
= 90.37
Based on the data provided, we observe the Days of Sales Outstanding (DSO) for Ziff Davis Inc over the past five years. The trend indicates an increasing DSO from 69.68 days in 2019 to 90.37 days in 2023. This suggests that the company is taking longer to collect its accounts receivable, which may potentially signal inefficiencies in its credit and collection policies.
A higher DSO could indicate that Ziff Davis Inc is facing challenges in collecting payments from customers promptly, which could impact its cash flow and liquidity position. It may also point towards potential issues with credit risk management or a need to improve the efficiency of the company's accounts receivable processes.
It is important for Ziff Davis Inc to closely monitor its DSO and implement strategies to reduce it if necessary, such as improving credit policies, enhancing collection efforts, or incentivizing early payments from customers. This analysis underscores the importance of managing working capital effectively to ensure the company's financial health and operational performance.