Colgate-Palmolive Company (CL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		13.22	12.27	11.95	13.43	13.03
DSO	days	27.62	29.75	30.55	27.17	28.01

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.22
= 27.62

Colgate-Palmolive Company's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making sales. Looking at the historical trend, the company's DSO has shown fluctuations over the years.

As of December 31, 2020, the DSO was at 28.01 days. It decreased slightly to 27.17 days by December 31, 2021, indicating that the company was collecting sales revenue more efficiently.

However, by December 31, 2022, the DSO increased to 30.55 days, suggesting a slight delay in revenue collection. This trend continued in the following year, with the DSO standing at 29.75 days as of December 31, 2023.

In the most recent period ending December 31, 2024, the DSO decreased to 27.62 days, showing an improvement compared to the previous year.

Overall, a lower DSO indicates that Colgate-Palmolive is collecting revenue faster, which can be a positive sign of efficient cash flow management. However, fluctuations in the DSO trend over the years may warrant further investigation into the company's credit policies, customer payment behavior, and overall sales performance.