Ziff Davis Inc (ZD)
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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 5.24 | 6.44 | 7.24 | 6.94 | |
| DSO | days | 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 | 69.68 | 56.69 | 50.40 | 52.59 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.04
= 90.37
To analyze Ziff Davis Inc's Days Sales Outstanding (DSO) trend, we observe a gradual increase from Q1 2022 to Q4 2023. The average DSO for the most recent quarter, Q4 2023, stands at 90.37 days, reflecting an increase compared to the prior quarter's 77.61 days. This suggests that the company is taking longer to collect revenue from its sales, potentially indicating challenges in receivables management or changes in customer payment behavior.
Analyzing the fluctuations across quarters, we note that peaks in DSO occurred in Q4 of both 2022 and 2023, which may indicate seasonal trends or operational issues specific to year-end periods. Conversely, the lowest DSO was recorded in Q2 2022 at 71.51 days, indicating a comparatively more efficient collection process during that period.
Overall, the upward trend in DSO warrants closer monitoring to identify underlying causes and implement strategies for improving cash flow efficiency and receivables management within Ziff Davis Inc.