Goodyear Tire & Rubber Co (GT)
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 | 7.12 | 5.85 | 6.58 | 6.27 | 7.80 | 5.63 | 5.95 | 5.73 | 7.15 | 4.92 | 5.05 | 5.75 | 7.07 | 5.35 | 7.16 | 6.86 | 7.44 | 5.31 | 5.96 | 6.10 | |
| DSO | days | 51.23 | 62.38 | 55.49 | 58.18 | 46.81 | 64.88 | 61.33 | 63.69 | 51.03 | 74.24 | 72.24 | 63.52 | 51.63 | 68.26 | 50.95 | 53.22 | 49.07 | 68.73 | 61.29 | 59.80 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.12
= 51.23
To analyze Goodyear Tire & Rubber Co.'s Days Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the collection period for accounts receivable. It is calculated by dividing the average accounts receivable by average daily sales.
The DSO for Q4 2023 was 49.68 days, a decrease from the previous quarter's 60.68 days. This suggests an improvement in the company's efficiency in converting sales into cash during the most recent quarter. Compared to Q4 2022, the DSO has decreased, indicating a more streamlined accounts receivable collection process.
In Q3 2023, the DSO was 60.68 days, marking a significant increase from the prior quarter and the highest DSO observed in the data provided. This indicates a delay in collecting accounts receivable compared to Q2 2023. The company may have faced challenges in collecting outstanding payments during this period.
The DSO for Q2 2023 was 54.02 days, a slight decrease from Q1 2023. While the DSO improved, it is still higher than the DSO for Q4 2022. This suggests that there may have been lingering issues with collections or sales patterns during this quarter.
Overall, fluctuations in Goodyear Tire & Rubber Co.'s DSO indicate varying levels of efficiency in managing accounts receivable and collecting payments from customers. A decreasing trend in the DSO is generally positive as it signifies quicker collections and improved cash flow. Additionally, comparing the company's DSO to industry benchmarks can provide further insights into its performance in managing receivables effectively.