Colgate-Palmolive Company (CL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		12.27	12.13	11.28	11.53	11.95	12.45	11.88	11.41	13.43	12.18	11.84	11.92	13.03	12.51	12.95	10.26	10.90	10.36	9.69	9.97
DSO	days	29.75	30.08	32.36	31.65	30.55	29.32	30.73	32.00	27.17	29.97	30.84	30.61	28.01	29.18	28.19	35.59	33.49	35.23	37.67	36.60

December 31, 2023 calculation

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

Based on the data provided, Colgate-Palmolive Co.'s Days of Sales Outstanding (DSO) fluctuated over the past eight quarters, ranging from a low of 29.32 days in Q3 2022 to a high of 32.36 days in Q2 2023. The DSO ratio indicates the average number of days it takes for the company to collect payment after making a sale.

The trend in DSO shows some volatility, with occasional increases and decreases over the quarters. A lower DSO value suggests that the company is collecting payments more quickly, which can indicate efficient accounts receivable management and strong customer payment practices. Conversely, a higher DSO may suggest potential issues with collections, such as extended credit terms or difficulties in customer payments.

It is important for Colgate-Palmolive Co. to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain healthy cash flow. Analyzing trends in DSO over time can help identify areas for improvement in accounts receivable management and overall financial performance.