General Motors Company (GM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		13.88	11.76	17.18	15.24	20.19
DSO	days	26.29	31.05	21.25	23.94	18.08

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.88
= 26.29

To analyze the days of sales outstanding (DSO) for General Motors Company, we can compare the trend over the past five years.

The DSO measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is more efficient in collecting receivables, while a higher DSO may suggest potential issues with collecting payments.

Looking at the data, we observe that the DSO has fluctuated over the past five years. In 2023, the DSO stands at 26.29 days, which is a decrease from 31.05 days in 2022. This decrease suggests that General Motors has been more efficient in collecting payments from its customers in the most recent year.

Comparing 2023 to 2021, the DSO has increased from 21.25 days to 26.29 days. This indicates that it took General Motors longer to collect payments in 2023 compared to 2021. It's important to investigate the reasons behind this increase to ensure that it doesn't indicate potential issues with accounts receivable management.

Furthermore, compared to 2019 and 2020, there has been an overall increase in DSO, suggesting a potential slowdown in the collection of receivables over the past three years.

Overall, while the recent decrease in DSO is a positive indicator of improved efficiency in collecting receivables, it's important for General Motors to continuously monitor and manage its accounts receivable to ensure timely collections and maintain healthy cash flows.