Corning Incorporated (GLW)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.39 | 8.01 | 8.24 | 7.03 | 5.30 | |
| DSO | days | 57.12 | 45.58 | 44.27 | 51.94 | 68.88 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.39
= 57.12
Looking at Corning Incorporated's Days Sales Outstanding (DSO) over the past five years, there has been a decreasing trend in the DSO metric. In December 2020, the company had a DSO of 68.88 days, which has decreased to 51.94 days by December 2021. This indicates that Corning has been able to collect its accounts receivable quicker in the most recent year.
Furthermore, the trend continues with the DSO decreasing to 44.27 days by December 2022, 45.58 days by December 2023, and then increasing slightly to 57.12 days by December 2024. Overall, the decreasing trend in DSO from 2020 to 2023 suggests an improvement in the company's efficiency in collecting receivables. However, the slight increase in 2024 may indicate potential challenges or changes in customer payment behavior that Corning may need to address in the coming years.
It's important to note that a lower DSO generally indicates that the company is collecting payments from its customers more quickly, which can improve cash flow and liquidity. However, it's essential for Corning to monitor fluctuations in DSO closely to ensure healthy cash flow management and maintain strong relationships with customers.
Peer comparison
Dec 31, 2024