GE Aerospace (GE)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.39	3.92	4.75	4.54	3.34
DSO	days	83.07	93.17	76.84	80.34	109.42

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.39
= 83.07

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company manages its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which can be a positive sign of strong cash flow management.

Analyzing the historical DSO figures of General Electric Co., we observe fluctuations in the metric over the past five years. In 2023, the DSO stands at 83.07 days, showing a slight improvement from the previous year's 85.71 days. This decrease suggests that General Electric Co. may have enhanced its collection processes or maintained effective credit policies, leading to quicker receipt of payments from customers.

Comparing the current DSO of 83.07 days to the figures from 2021, 2020, and 2019, we notice a more favorable trend in managing accounts receivable efficiently. In 2021, the DSO was 76.84 days, indicating a relatively shorter collection period than in 2023, while 2020 had a significantly higher DSO at 112.97 days. The improvement in 2023 signifies a potential enhancement in General Electric Co.'s receivables management compared to the challenges faced in 2020.

Furthermore, in 2019, the DSO was 91.21 days, reflecting a longer collection period than in the most recent year. The consistent reduction in DSO from 2019 to 2023 may indicate General Electric Co.'s efforts to streamline its accounts receivable processes and strengthen relationships with customers to expedite payments.

Overall, the downward trend in DSO over the years suggests that General Electric Co. has made progress in efficiently collecting payments from customers, which could positively impact its cash flows and overall financial health. Continued attention to managing accounts receivable effectively will be crucial for sustaining this positive trend in the future.