General Dynamics Corporation (GD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.25 | 3.84 | 3.34 | 3.33 | 3.39 | |
| DSO | days | 85.86 | 94.99 | 109.32 | 109.48 | 107.65 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.25
= 85.86
Based on the provided data, General Dynamics Corporation's Days Sales Outstanding (DSO) has shown a decreasing trend over the years. The DSO decreased from 107.65 days as of December 31, 2020, to 85.86 days as of December 31, 2024.
A decreasing trend in DSO indicates that the company is collecting its accounts receivable more efficiently, which could be due to improved credit policies, better collection procedures, or a more effective management of receivables. A lower DSO signifies that the company is converting its sales into cash faster, resulting in improved liquidity and potentially lower credit risk.
It is important to note that a low DSO should be balanced with an assessment of the company's overall financial health and industry benchmarks to get a more comprehensive understanding of General Dynamics Corporation's receivables management efficiency.
Peer comparison
Dec 31, 2024
See also:
General Dynamics Corporation Average Receivable Collection Period