Abbott Laboratories (ABT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.01	6.93	6.56	5.31	5.74
DSO	days	60.77	52.67	55.66	68.71	63.54

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.01
= 60.77

Abbott Laboratories' Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its credit sales. The trend of DSO over the past five years shows fluctuations.

In 2023, Abbott's DSO was 59.74 days, representing a slight increase from the prior year. This indicates that it took the company approximately 59 days to collect its accounts receivable, which could suggest a potential slowdown in the collection process compared to previous years.

Comparing this to historical data, the DSO was at its lowest in 2022 at 51.99 days, signaling that Abbott was able to collect payments more efficiently that year. However, in 2020, the DSO spiked to 67.65 days, indicating a longer collection period due to potentially stricter credit policies or economic challenges impacting customers' ability to pay.

Overall, monitoring DSO trends can provide insights into Abbott Laboratories' effectiveness in managing its accounts receivable and cash flow. An upward trend in DSO may signal potential liquidity issues, while a downward trend could indicate improved efficiency in collecting revenue.