Booking Holdings Inc (BKNG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.98	8.09	8.37	18.07	11.95
DSO	days	52.33	45.13	43.60	20.19	30.55

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.98
= 52.33

The days sales outstanding (DSO) for Booking Holdings Inc has shown a fluctuating trend over the past five years. In 2023, the DSO increased to 55.57 days from 47.61 days in 2022, indicating that it took the company longer to collect its accounts receivable in 2023 compared to the previous year. This rise in DSO may suggest that there were delays in receiving payments from customers or changes in the company's credit policies.

Comparing 2023 to 2021, the DSO also increased from 45.23 days to 55.57 days, indicating a longer collection period in 2023. This may potentially signal challenges in the company's collections process or an increase in credit sales.

In 2020, the DSO was significantly lower at 28.41 days, reflecting a more efficient accounts receivable management and faster collection of sales. However, the DSO increased in 2021 and continued to rise in subsequent years.

Despite the fluctuations, it is essential for Booking Holdings Inc to closely monitor and manage its DSO to ensure timely collection of receivables and maintain healthy cash flows. Analyzing the reasons behind the changes in DSO can provide insights into the company's financial performance and help in implementing strategies to improve efficiency in accounts receivable management.