Alphabet Inc Class A (GOOGL)

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		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	5.87	7.36	6.96	7.37
DSO	days	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	62.15	49.59	52.43	49.50

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.37
= 57.32

To analyze Alphabet Inc's days of sales outstanding (DSO) over the past eight quarters, we calculate the average DSO and observe any trends or patterns. DSO measures the average number of days a company takes to collect revenue after a sale is made.

The average DSO for the eight quarters is 49.88 days. Over this period, there has been a fluctuation in DSO, with a general downward trend from 51.95 days at the end of December 2022 to 46.21 days at the end of March 2023, followed by a slight increase in the subsequent quarter.

The decrease in DSO indicates an improvement in Alphabet Inc's ability to collect receivables and convert sales into cash, which is a positive trend. It suggests efficient management of accounts receivable and a potentially healthier cash flow.

Overall, the decreasing trend in DSO is a positive sign, reflecting favorable developments in Alphabet Inc's receivables management. However, it is essential to consider other factors such as industry benchmarks and company-specific dynamics when interpreting DSO.