Baxter International Inc (BAX)

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		5.18	5.93	6.00	5.91	5.32	5.78	—	—	4.50	—	—	—	5.13	—	—	—	5.57	—	—	—
DSO	days	70.46	61.54	60.88	61.76	68.55	63.12	—	—	81.08	—	—	—	71.15	—	—	—	65.53	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.18
= 70.46

To analyze Baxter International Inc.'s Days of Sales Outstanding (DSO) based on the provided data, we observe fluctuations over the past eight quarters. DSO measures the average number of days it takes for a company to collect revenue after a sale is made.

In Q4 2022, the DSO stood at 64.22 days, and it decreased to 63.27 days in Q3 2022 before slightly increasing to 63.60 days in Q2 2022. Subsequently, in Q1 2022, the DSO increased to 66.59 days.

Moving to 2023, there is a decreasing trend from Q1 to Q3, with DSO dropping from 61.75 days in Q1 2023 to 61.33 days in Q3 2023. However, in Q4 2023, there was a slight increase to 66.28 days.

Analyzing this trend, Baxter International Inc. has been managing its collections effectively, with improvements in DSO efficiency throughout most quarters in 2022 and the early part of 2023. The increase in Q4 2023 compared to the previous quarter may indicate potential challenges in accounts receivable collections or changes in sales patterns that impacted the collection period.

Overall, a lower DSO indicates faster cash conversion from sales, which is typically a positive sign. However, it is essential for Baxter International Inc. to monitor DSO continuously to ensure efficient management of accounts receivable and maintain healthy working capital levels.