Caterpillar Inc (CAT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.56 | 3.33 | 2.93 | 2.49 | 7.03 | |
| DSO | days | 102.44 | 109.75 | 124.42 | 146.71 | 51.89 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.56
= 102.44
The days of sales outstanding (DSO) for Caterpillar Inc. have exhibited a fluctuating trend over the past five years, indicating varying efficiency in collecting accounts receivable. In 2023, the DSO decreased to 50.67 days from 54.39 days in 2022, marking an improvement in the collection period. This reduction suggests that the company was able to convert sales into cash more quickly compared to the previous year.
However, when compared to 2021 and 2020, where the DSO was 60.70 days and 63.97 days respectively, the 2023 figure reflects a more efficient accounts receivable management. In 2019, the DSO was slightly lower at 58.13 days, indicating relatively better collection efficiency compared to 2023.
Overall, while the DSO for Caterpillar Inc. decreased in 2023 compared to the previous year, it is essential for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collection of sales proceeds and maintain healthy cash flows.
Peer comparison
Dec 31, 2023