Alphabet Inc Class C (GOOG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.37	6.99	6.40	5.82	5.89
DSO	days	57.29	52.24	57.05	62.76	62.00

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.37
= 57.29

Days of Sales Outstanding (DSO) is a significant financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates a more efficient collection process, while a higher DSO suggests a longer period for accounts receivable turnover.

Analyzing Alphabet Inc's DSO over the past five years reveals the following trends:
- In 2023, the DSO was 56.95 days, showing a slight increase from the previous year.
- In 2022, the DSO was 51.95 days, indicating a decrease compared to 2021.
- In 2021, the DSO was 57.05 days, slightly higher than the 2020 figure.
- In 2020, the DSO was 62.76 days, showing an increase compared to 2019.
- In 2019, the DSO was 62.00 days, reflecting a similar level compared to the previous year.

The trend in DSO for Alphabet Inc indicates both fluctuations and slight improvements in the efficiency of accounts receivable turnover over the past five years. It is imperative for Alphabet Inc to continue monitoring and managing its DSO to ensure a healthy cash flow and efficient working capital management.