Danaher Corporation (DHR)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.04	6.38	6.31	5.43	5.58
DSO	days	60.42	57.20	57.81	67.16	65.46

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.04
= 60.42

In analyzing Danaher Corp.'s Days Sales Outstanding (DSO) over the past five years, a clear trend emerges. The DSO for the company has shown a relatively consistent performance between 2021 and 2019, with fluctuations within a narrow range. In 2021 and 2019, the DSO was approximately 57 to 65 days, indicating that on average, it took the company between 57 to 65 days to collect its accounts receivable.

However, a notable change occurred in 2020, where the DSO increased to 66.25 days. This could suggest potential challenges in collecting receivables efficiently during that period, possibly due to economic conditions or changes in the company's credit policies.

Subsequently, in 2022 and 2023, there was a slight improvement in DSO, with the metric declining to 57.04 and 59.92 days, respectively. This improvement may indicate enhanced collection practices or a more effective management of accounts receivable during these years.

Overall, monitoring changes in DSO can provide insights into a company's cash flow management and efficiency in collecting receivables. Danaher Corp.'s gradual DSO improvement in recent years suggests a positive trend, but continued monitoring is advisable to ensure effective credit and collection policies are maintained.