Expedia Group Inc. (EXPE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.42 | 5.35 | 6.20 | 6.06 | 4.58 | |
| DSO | days | 82.50 | 68.25 | 58.90 | 60.21 | 79.68 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.42
= 82.50
The Days of Sales Outstanding (DSO) metric for Expedia Group Inc has shown fluctuations over the past five years. As of December 31, 2023, the DSO stands at 80.54 days, representing an increase compared to the previous year. This indicates that, on average, it takes Expedia Group approximately 80.54 days to collect its accounts receivable.
Looking at the trend over the years, there was a significant decrease in DSO from 2019 to 2021, suggesting improved efficiency in collecting receivables during this period. However, there was an uptick in 2022 and 2023, indicating a potential delay or challenges in collecting payments from customers in those years.
It is essential for Expedia Group to closely monitor its DSO metric and work on strategies to ensure timely collection of accounts receivable, as a high DSO can tie up cash flow and impact the company's liquidity position. Analyzing the reasons behind the fluctuations in DSO can provide insights into the company's effectiveness in credit management and customer payment behavior.
Peer comparison
Dec 31, 2023