Ziff Davis Inc (ZD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 2.12 | 2.92 | 3.02 | 3.06 | 4.04 | 4.70 | 4.80 | 4.98 | 4.56 | 6.04 | 5.82 | 5.39 | 4.48 | 5.19 | 5.26 | 5.03 | 3.56 | 6.12 | 6.64 | 6.46 | |
| DSO | days | 172.08 | 125.07 | 120.82 | 119.42 | 90.37 | 77.61 | 76.08 | 73.30 | 79.96 | 60.44 | 62.71 | 67.77 | 81.50 | 70.36 | 69.38 | 72.58 | 102.56 | 59.62 | 54.94 | 56.47 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.12
= 172.08
The Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. Looking at the trend of DSO for Ziff Davis Inc over the quarters from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes for the company to collect its sales revenue.
Initially, in March 2020, the DSO stood at 56.47 days, showcasing a relatively efficient collection process. However, by December 2020, the DSO had increased significantly to 102.56 days, suggesting a slowdown in collecting payments from customers. Subsequently, the DSO figures fluctuated within a certain range, with values ranging from 67.77 days in March 2022 to 125.07 days in September 2024.
Of note is the sharp increase to 172.08 days by December 2024, indicating a significant delay in collecting accounts receivable, which may pose challenges related to cash flow management and working capital. The increasing trend in DSO over the quarters signifies potential issues with credit policies, customer payment behavior, or possibly economic conditions affecting customer liquidity.
Overall, the analysis suggests that Ziff Davis Inc should closely monitor and potentially review its accounts receivable management practices to optimize its cash flow and liquidity position.