Ford Motor Company (F)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		2.78	2.78	2.81	2.81	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
DSO	days	131.30	131.08	129.87	130.04	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.78
= 131.30

Days Sales Outstanding (DSO) is a key financial metric that indicates the average number of days it takes for a company to collect payment after a sale is made. A lower DSO is generally preferred as it signifies a shorter collection period and better liquidity management.

Analyzing the DSO trend of Ford Motor Company over the past few years, we observe the following:
- The DSO has fluctuated somewhat over the periods provided, ranging from a high of 150.41 days in December 2020 to a low of 112.82 days in June 2022.
- There was a significant improvement in DSO from June 2021 to December 2021, where it decreased from 115.28 days to 117.56 days, indicating that Ford was able to collect payments more efficiently during this period.
- The DSO increased slightly in the most recent periods, reaching 131.30 days in December 2024, which could suggest a potentially slower collection of receivables.

Overall, although there have been fluctuations in Ford's DSO, it is essential to monitor this metric closely to ensure efficient working capital management and timely collection of receivables. It is important for Ford to continue focusing on improving its collection processes to maintain a healthy cash conversion cycle and enhance overall liquidity.