Colgate-Palmolive Company (CL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.27	11.95	13.43	13.03	10.90
DSO	days	29.75	30.55	27.17	28.01	33.49

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.27
= 29.75

The days of sales outstanding (DSO) for Colgate-Palmolive Co. have shown a fluctuating trend over the past five years. In 2023, the DSO decreased to 29.75 days from 30.55 days in 2022, indicating an improvement in the collection of accounts receivable. This reduction suggests that the company is becoming more efficient in converting credit sales into cash.

Comparing 2023 to 2021, there was an increase in DSO from 27.17 days to 29.75 days. This indicates a slight deterioration in the company's ability to collect receivables promptly. However, when compared to 2020 and 2019, the current DSO of 29.75 days is lower than the respective figures of 28.01 days and 33.49 days. This suggests a stronger performance in 2023 than in those prior years in terms of managing accounts receivable.

Overall, Colgate-Palmolive Co. has made progress in managing its DSO over the years, with more recent improvements compared to previous periods. Continued monitoring and potential optimization of the collection process may further enhance the company's overall financial efficiency.