Avis Budget Group Inc (CAR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.34 | 14.81 | 12.02 | 8.35 | 10.07 | |
| DSO | days | 27.36 | 24.65 | 30.37 | 43.72 | 36.25 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.34
= 27.36
The days of sales outstanding (DSO) for Avis Budget Group Inc have fluctuated over the past five years, indicating variations in the company's ability to collect receivables efficiently. In 2023, the DSO stood at 27.36 days, showing a slight increase from the previous year's 24.65 days. This suggests that the company took longer to collect its accounts receivable in 2023 compared to 2022.
However, when compared to 2021, which had a DSO of 30.37 days, the DSO decreased in 2023, indicating an improvement in the collection of receivables. The significant decrease from 43.72 days in 2020 to 27.36 days in 2023 reflects a substantial enhancement in Avis Budget Group Inc's efficiency in collecting its sales proceeds.
Although the DSO in 2019 was lower at 36.25 days than in 2023, the consistent decrease in DSO from 2020 to 2023 is a positive trend, signaling improved cash flow management and possibly tighter credit policies. Overall, the trend in Avis Budget Group Inc's DSO indicates a positive direction in terms of receivables management efficiency.
Peer comparison
Dec 31, 2023