Ford Motor Company (F)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		2.78	2.84	2.90	3.10	2.43
DSO	days	131.35	128.49	125.74	117.56	150.41

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.78
= 131.35

Ford Motor Company's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years based on the provided data.

As of December 31, 2020, the DSO was relatively high at 150.41 days, indicating that it took the company approximately 150 days to convert its accounts receivable into cash. This may suggest that Ford was facing challenges in collecting payments from its customers promptly.

However, there was a notable improvement by December 31, 2021, with the DSO decreasing to 117.56 days. This significant reduction indicates that Ford was more efficient in collecting cash from its sales, which is a positive sign of effective accounts receivable management.

Subsequently, the DSO increased slightly by December 31, 2022, to 125.74 days, and continued to rise to 128.49 days by December 31, 2023, and 131.35 days by December 31, 2024. These higher DSO figures may suggest that Ford was experiencing challenges in collecting payments efficiently during these periods.

Overall, Ford's DSO trend reflects variability in its accounts receivable collection efficiency over the years. Further analysis would be needed to determine the underlying reasons for these fluctuations and to assess the impact on the company's overall financial performance and liquidity.