Alphabet Inc Class A (GOOGL)

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

The days of sales outstanding (DSO) for Alphabet Inc have shown some fluctuations over the past five years. In 2023, the DSO increased to 56.95 days from 51.95 days in 2022, indicating a slight deterioration in the collection of receivables. This trend is consistent with the previous year, as the DSO increased from 57.05 days in 2021 to 62.76 days in 2020, reflecting a less efficient collection process.

However, it's worth noting that in 2019, the DSO was 62.00 days, which is similar to the level observed in 2020. Despite the recent increases, the DSO has not surpassed the level of five years ago, suggesting a relatively stable performance in managing accounts receivable despite recent fluctuations. Nonetheless, management may want to closely monitor and potentially improve the collection process to ensure efficient management of receivables and cash flow in the future.