Goodyear Tire & Rubber Co (GT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.12 | 7.80 | 7.15 | 7.09 | 7.44 | |
| DSO | days | 51.23 | 46.81 | 51.03 | 51.49 | 49.06 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.12
= 51.23
The Days of Sales Outstanding (DSO) metric for Goodyear Tire & Rubber Co. has shown some slight fluctuations over the past five years. As of December 31, 2023, the company's DSO stood at 49.68 days, compared to 45.79 days in 2022, 49.85 days in 2021, 50.09 days in 2020, and 48.05 days in 2019.
The DSO metric indicates the average number of days it takes for the company to collect its accounts receivable. A lower DSO value is generally preferred as it signifies a quicker collection process and efficient management of credit sales.
In the case of Goodyear Tire & Rubber Co., the DSO has been relatively stable over the years, indicating consistent performance in managing its accounts receivable. However, the slight increase in DSO from 2022 to 2023 may suggest a potential delay in collecting receivables or a change in the company's credit policies.
It would be advisable for the company to monitor this metric closely to ensure timely collection of outstanding receivables and maintain healthy cash flows. Additionally, comparing the DSO with industry benchmarks and competitors can provide further insights into Goodyear's efficiency in managing its credit sales and receivables.