Airbnb Inc (ABNB)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Receivables turnover		75.52	48.38	51.78	49.95
DSO	days	4.83	7.55	7.05	7.31

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 75.52
= 4.83

Days Sales Outstanding (DSO) is a vital metric that reflects the average number of days it takes for Airbnb Inc to collect revenue after making a sale. A lower DSO indicates a faster collection of accounts receivable, which is favorable for the company's cash flow.

Based on the data provided, Airbnb Inc has displayed a consistent and efficient collection process over the past few years. The DSO has shown a slight fluctuation from 7.31 days on December 31, 2021, to 7.05 days on December 31, 2022. However, the DSO increased slightly to 7.55 days on December 31, 2023, before significantly dropping to 4.83 days on December 31, 2024.

This downward trend in DSO from 2023 to 2024 indicates an improvement in the company's accounts receivable management efficiency. Airbnb Inc has been able to collect revenue more quickly in 2024, which could imply better cash flow management and potentially lower risk related to outstanding payments.

Overall, the decreasing trend in DSO over the years suggests that Airbnb Inc has been successful in optimizing its collection processes and maintaining a healthy working capital turnover. This efficiency in accounts receivable management could contribute positively to the company's financial health and operational performance.