Ford Motor Company (F)

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		2.84	3.00	2.97	2.98	2.90	3.12	3.24	2.94	3.10	3.10	3.17	2.52	2.43	2.52	2.52	2.44	2.48	2.56	2.45	2.35
DSO	days	128.30	121.51	123.02	122.44	125.74	117.07	112.82	124.22	117.56	117.81	115.28	144.56	150.41	144.88	145.07	149.81	147.24	142.79	148.84	155.13

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.84
= 128.30

Days of Sales Outstanding (DSO) is a financial metric used to evaluate the average number of days it takes for a company to collect its accounts receivable. Lower DSO values are generally favorable as they indicate the company is collecting payments more quickly.

In the case of Ford Motor Co., the DSO values have been relatively consistent in the range of 31 to 37 days over the past eight quarters. The trend shows that in the most recent quarter, Q4 2023, the DSO decreased to 32.32 days compared to the prior quarter Q3 2023 where it was 31.69 days. This decrease suggests that Ford may have improved its accounts receivable collection efficiency during this period.

Overall, Ford's DSO performance indicates that the company has been managing its accounts receivable effectively, maintaining a relatively stable collection period. However, it would be important to monitor fluctuations in DSO over time to ensure that Ford continues to efficiently collect payments from its customers.