Genuine Parts Co (GPC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.36 | 10.15 | 10.43 | 10.55 | 7.31 | |
| DSO | days | 35.24 | 35.94 | 35.01 | 34.58 | 49.95 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.36
= 35.24
The days of sales outstanding (DSO) for Genuine Parts Co. have shown a generally stable trend over the past five years, ranging from 34.36 days to 49.60 days. The DSO decreased from 49.60 days in 2019 to 34.78 days in 2021, indicating an improvement in the company's accounts receivable collection efficiency. However, there was a slight increase in DSO to 36.16 days in 2022 and a subsequent decrease to 35.15 days in 2023.
Overall, Genuine Parts Co. has been able to maintain a relatively low number of days of sales outstanding, which suggests effective management of its accounts receivable. This metric is vital for evaluating the company's ability to collect cash from its customers promptly and efficiently, ultimately impacting its liquidity and working capital management.