eBay Inc (EBAY)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		107.57	108.83	106.33	21.59	10.61
DSO	days	3.39	3.35	3.43	16.91	34.39

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 107.57
= 3.39

EBay Inc.'s Days of Sales Outstanding (DSO) is a measure of how efficiently the company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is typically viewed as a positive sign.

Based on the data provided, we can see a decreasing trend in EBay Inc.'s DSO over the past five years. In 2019, the DSO was 23.66 days, indicating that it took the company an average of 23.66 days to collect payments from customers. However, this number has been steadily decreasing since then, reaching 3.39 days by the end of 2023.

The significant reduction in DSO from 2019 to 2023 suggests that EBay Inc. has improved its accounts receivable management and is collecting payments from customers at a much faster pace. This may be attributed to more efficient invoicing and collection processes, stricter credit policies, or improved customer payment behavior.

Overall, the decreasing trend in EBay Inc.'s DSO signifies a positive development in the company's financial operations and liquidity management. It indicates that the company is effectively managing its receivables and converting sales into cash without unnecessary delays.