Dow Inc (DOW)

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		6.75	6.21	6.43	6.85	7.34	6.96	6.19	5.86	5.75	5.45	5.07	4.92	5.22	5.38	5.68	5.49	5.69
DSO	days	54.10	58.75	56.76	53.31	49.74	52.41	58.98	62.30	63.44	66.93	71.96	74.20	69.98	67.86	64.25	66.54	64.20

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.75
= 54.10

To analyze the days of sales outstanding (DSO) for Dow Inc, we will calculate the average DSO for the most recent four quarters.

Average DSO = (54.10 + 58.75 + 56.76 + 53.31) / 4
= 55.73 days

The average DSO of 55.73 days indicates the average number of days it takes for Dow Inc to collect its accounts receivables. A lower DSO is generally favorable, as it suggests that the company is efficient in collecting payments from its customers.

Comparing the average DSO to previous quarters, we can see that there has been a slight increase from the previous quarters, indicating a potential slowdown in the collection of receivables. This could be due to various factors such as changes in customer payment behavior, credit terms, or the company's collection strategies.

Overall, Dow Inc should monitor its DSO closely and consider implementing strategies to improve its collection process in order to maintain healthy cash flow and liquidity.