Ford Motor Company (F)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		2.84	2.90	3.10	2.43	2.48
DSO	days	128.49	125.74	117.56	150.41	147.24

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.84
= 128.49

Ford Motor Co.'s Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its customers. A lower DSO indicates that the company is able to collect payments more quickly, thereby improving its cash flow and liquidity.

From 2019 to 2023, Ford's DSO has shown a fluctuating trend. In 2019, the DSO was 21.63 days, indicating efficient collection of sales revenue. However, over the next few years, the DSO increased, reaching a peak of 36.32 days in 2022 before decreasing to 32.32 days in 2023.

The increasing trend in DSO from 2019 to 2022 may suggest potential issues with the company's accounts receivable management or credit policies, resulting in delayed collection of revenue. The decrease in DSO in 2023 could signify improvements in collections efficiency or changes in customer payment behavior.

Overall, a thorough analysis of the reasons behind the fluctuations in DSO over the years, in conjunction with other financial metrics, would provide deeper insights into Ford's working capital management and financial performance.