Alphabet Inc Class C (GOOG)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		6.67	6.89	6.93	7.10	6.37	7.18	7.42	7.86	6.99	7.81	7.50	7.58	6.39	6.85	6.68	6.87	5.79	6.71	7.67	7.01
DSO	days	54.76	52.94	52.64	51.44	57.32	50.81	49.22	46.45	52.20	46.76	48.70	48.15	57.13	53.32	54.64	53.11	63.04	54.41	47.62	52.10

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.67
= 54.76

The Days of Sales Outstanding (DSO) ratio is a measure of how quickly a company is able to collect its accounts receivable. A lower DSO indicates that a company is collecting payments from its customers more quickly, which is generally favorable.

Based on the data provided for Alphabet Inc Class C, we observe that the DSO has fluctuated over the quarters, with values ranging from a low of 46.45 days to a high of 63.04 days. This variability suggests some level of inconsistency in the company's accounts receivable collection process.

Analyzing the trend, we see that there is some improvement in the DSO in the most recent quarters, with the ratio decreasing from 63.04 days in December 2020 to 54.76 days in December 2024. This reduction may indicate that Alphabet Inc has been able to streamline its accounts receivable management and collect payments more efficiently.

However, it is important to note that the DSO ratio is best analyzed in comparison to industry benchmarks and historical performance of the company. Further investigation into the reason behind the fluctuations and the company's overall credit and collection policies would provide more insight into the effectiveness of Alphabet Inc's accounts receivable management.