Colgate-Palmolive Company (CL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		13.22	11.74	10.95	10.89	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
DSO	days	27.62	31.08	33.33	33.50	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

December 31, 2024 calculation

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

The Days Sales Outstanding (DSO) ratio for Colgate-Palmolive Company, which measures the average number of days it takes the company to collect revenue after a sale is made, has shown some fluctuations over the past few years.

From March 2020 to June 2020, there was a significant decrease in DSO from 35.59 days to 28.19 days, indicating an improvement in the company's collection efficiency. However, over the next few quarters, there were slight fluctuations in DSO, hovering around the 29-31 day range, suggesting that the company was maintaining a relatively stable collection process.

By December 2021, the DSO had decreased to 27.17 days, which was one of the lowest values in the given data set. This suggested that Colgate-Palmolive was able to collect revenue more quickly, which is generally a positive sign for the company's cash flow and liquidity.

In the following quarters, the DSO started to increase slightly, reaching 33.50 days by March 2024. This uptrend could indicate potential challenges in collections or a change in the company's sales mix that might be impacting the collection cycle.

Overall, it is important for investors and analysts to monitor changes in the DSO ratio over time as it can provide insights into the efficiency of Colgate-Palmolive's accounts receivable management and its overall financial health.