General Dynamics Corporation (GD)

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it indicates efficient accounts receivable management.

Analyzing General Dynamics Corp.'s DSO over the past five years reveals a fluctuating trend. In 2023, the DSO decreased to 94.99 days from 109.32 days in 2022. This reduction suggests that the company has improved its accounts receivable collection process, possibly by implementing better credit policies or more effective collection efforts.

Comparing 2023 to 2021, there has been a noticeable decrease in DSO from 109.48 to 94.99 days. This significant improvement indicates that General Dynamics Corp. has focused on enhancing its cash flow by accelerating the collection of outstanding payments.

Although there was a slight increase in DSO from 2020 to 2021, the overall trend in recent years shows a positive direction in managing accounts receivable. However, it is important for the company to continue monitoring and improving its DSO to ensure efficient cash flow management and liquidity.

Overall, the current DSO of General Dynamics Corp. at 94.99 days reflects a positive trend in accounts receivable management, indicating potential strengthened financial health as the company continues to enhance its collection processes.

Peer comparison

Dec 31, 2023

See also:

General Dynamics Corporation Average Receivable Collection Period