General Motors Company (GM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		13.88	12.35	12.06	11.73	11.76	10.50	10.64	10.92	17.18	16.18	17.10	13.40	15.24	11.65	14.57	17.92	20.19	20.91	14.01	12.04
DSO	days	26.29	29.55	30.25	31.11	31.05	34.76	34.31	33.41	21.25	22.55	21.35	27.25	23.94	31.33	25.05	20.36	18.08	17.45	26.06	30.33

December 31, 2023 calculation

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

The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficient cash flow management.

Looking at the DSO trend for General Motors Company, we observe a gradual decrease in the days of sales outstanding from 34.76 days in September 2022 to 26.29 days in December 2023. This indicates an improvement in the company's collection process, as it is taking fewer days to collect payments from customers.

The decreasing trend in DSO may be attributed to effective credit and collection policies, improved customer payment behavior, and efficient accounts receivable management. It suggests that General Motors is becoming more effective in converting its credit sales into cash, potentially improving its working capital management.

However, it's important to note that a significant decrease in DSO should be assessed in conjunction with other financial metrics to understand the overall financial health and liquidity of the company. Nonetheless, the trend in DSO for General Motors Company reflects a positive development in its accounts receivable management.