Becton Dickinson and Company (BDX)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		7.64	8.61	7.66	6.70	7.37
DSO	days	47.74	42.38	47.64	54.45	49.50

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.64
= 47.74

To analyze Becton Dickinson & Co.'s days of sales outstanding (DSO) over the past five years, we observe a trend of fluctuating DSO figures. The DSO, which indicates the average number of days it takes for a company to collect revenue after making a sale, has shown variability from a low of 42.38 days in 2022 to a high of 51.13 days in 2020.

The DSO has decreased to 47.74 days in 2023 from 45.01 days in 2021, indicating an improvement in the company's ability to collect receivables efficiently. This reduction may reflect more effective credit and collection policies, stronger customer relationships, or improved collection processes.

It is essential to note that a decreasing trend in DSO implies enhanced liquidity and efficiency in the company's operations, as it takes less time to convert sales into cash. Conversely, an increasing trend could raise concerns regarding working capital management and potential cash flow challenges.

Overall, the analysis of Becton Dickinson & Co.'s DSO suggests that the company has experienced fluctuations in its ability to collect receivables efficiently over the past five years, with the recent decrease in DSO potentially indicating improved cash collection processes and working capital management.