General Dynamics Corporation (GD)
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 | 3.85 | 3.59 | 3.58 | — | 3.34 | — | — | — | 3.33 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 94.78 | 101.75 | 102.10 | — | 109.32 | — | — | — | 109.48 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.85
= 94.78
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is able to collect payments from customers more quickly, which is generally considered favorable.
Analyzing the trend of General Dynamics Corp.'s DSO over the past eight quarters, we observe some fluctuations in the metric. In Q4 2023, the DSO decreased to 94.99 days from 102.00 days in Q3 2023. This suggests an improvement in the company's ability to collect revenue from customers in a more prompt manner.
Comparing the DSO in Q4 2023 to the same period in the previous year (Q4 2022), we see a noticeable decrease from 109.32 days to 94.99 days. This indicates a positive trend in the company's receivables management efficiency over the one-year period.
Overall, the downward trend in DSO over the past year suggests that General Dynamics Corp. may be enhancing its credit and collection policies, resulting in a more efficient cash conversion cycle. It is important to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health and liquidity position accurately.
Peer comparison
Dec 31, 2023
See also:
General Dynamics Corporation Average Receivable Collection Period (Quarterly Data)