GE HealthCare Technologies Inc. (GEHC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Receivables turnover | 187.33 | — | 5.34 | |
| DSO | days | 1.95 | — | 68.37 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 187.33
= 1.95
The days of sales outstanding (DSO) metric for GE HealthCare Technologies Inc. presents an interesting trend over the years. On December 31, 2022, the DSO stood at 68.37 days, indicating that, on average, the company takes approximately 68 days to convert its accounts receivable into cash. In the subsequent year, on December 31, 2023, the DSO data is missing ("— days"), which raises some concerns about the clarity and reliability of the financial reporting during that period. However, by December 31, 2024, the DSO dramatically improved to 1.95 days, showcasing a significant enhancement in the efficiency of the company's accounts receivable management. This reduction implies that GE HealthCare Technologies Inc. has been able to collect its outstanding receivables much quicker, potentially signaling effective credit policies or a shift in customer payment behavior.
Peer comparison
Dec 31, 2024