Alphabet Inc Class A (GOOGL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.67	6.37	6.99	6.40	5.82
DSO	days	54.75	57.29	52.24	57.05	62.76

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.67
= 54.75

The Days of Sales Outstanding (DSO) is a crucial liquidity metric that indicates the average number of days it takes for a company to collect its accounts receivable. For Alphabet Inc Class A, the DSO has shown a decreasing trend over the past five years.

As of December 31, 2020, the DSO stood at 62.76 days, indicating that, on average, the company took approximately 62.76 days to collect outstanding receivables. By December 31, 2021, the DSO had decreased to 57.05 days, suggesting an improvement in the company's efficiency in collecting receivables.

Continuing the trend, the DSO further decreased to 52.24 days by December 31, 2022, reflecting Alphabet Inc's enhanced ability to manage its accounts receivable effectively. However, by December 31, 2023, the DSO increased slightly to 57.29 days, indicating a potential slowdown in the collection of receivables.

By the end of December 31, 2024, the DSO decreased again to 54.75 days, indicating a better performance in collecting receivables compared to the previous year. Overall, despite some fluctuations, Alphabet Inc Class A has managed to maintain its DSO at a relatively low level, suggesting efficient management of accounts receivable and improved liquidity position.