GE Aerospace (GE)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.15	4.06	3.92	4.75	4.54
DSO	days	87.96	89.87	93.17	76.84	80.34

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.15
= 87.96

GE Aerospace's Days Sales Outstanding (DSO) shows the average number of days it takes the company to collect revenues after making a sale. Analyzing the trend from 2020 to 2024, we observe fluctuations in DSO:

- In December 2020, the DSO was 80.34 days, indicating that, on average, it took the company around 80 days to collect revenues from sales.
- By December 2021, the DSO decreased to 76.84 days, implying a slight improvement in collections efficiency, as it took fewer days to collect revenue compared to the previous year.
- However, in December 2022, the DSO increased to 93.17 days, suggesting a delay in collecting revenues compared to the previous year. This might indicate challenges in the company's accounts receivable management.
- The trend continued in December 2023, with DSO at 89.87 days, still higher than the previous year.
- By December 2024, the DSO improved slightly to 87.96 days, but it remained higher than the levels seen in 2021 and 2020.

Overall, the fluctuating trend in DSO suggests that the company may have experienced challenges in managing accounts receivable efficiently, leading to delays in collecting revenues. Further analysis of the underlying reasons for these changes would be necessary to understand the implications for GE Aerospace's financial performance and operational effectiveness.