Edwards Lifesciences Corp (EW)

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		7.74	7.87	7.49	7.65	8.34	8.67	8.40	8.40	8.96	8.48	7.69	7.63	8.54	7.96	—	—	8.01	—	—	—
DSO	days	47.17	46.37	48.71	47.73	43.77	42.09	43.47	43.46	40.72	43.04	47.47	47.82	42.75	45.85	—	—	45.56	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.74
= 47.17

Based on the historical data provided, Edwards Lifesciences Corp's Days Sales Outstanding (DSO) has experienced some fluctuations over the past eight quarters. In Q4 2023, the DSO stood at 50.87 days, showing a slight increase compared to the previous quarter's 50.31 days. This indicates that it took the company approximately 50.87 days to collect its accounts receivable during the most recent quarter.

Looking at the trend over the past eight quarters, there seems to be some variability in the DSO figures, with values ranging from a low of 45.01 days in Q3 2022 to a high of 52.71 days in Q2 2023. Generally, a decreasing DSO trend is preferable as it implies that the company is collecting payments more quickly, which can improve cash flow and liquidity.

It is important to delve deeper into the reasons behind these fluctuations in DSO. A higher DSO could indicate issues with credit policies, collection procedures, or customer financial health, all of which could impact the company's working capital management. Conversely, a lower DSO might suggest more efficient accounts receivable management, possibly due to improved billing practices or a high proportion of cash sales.

Further analysis and comparison with industry benchmarks or competitors' DSO ratios could provide more insights into Edwards Lifesciences Corp's efficiency in managing its accounts receivable and overall financial health.