WW Grainger Inc (GWW)
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 | 7.48 | 6.63 | 6.59 | 6.79 | 7.10 | 6.81 | 6.73 | 6.75 | 7.38 | 7.20 | 7.46 | 7.49 | 7.95 | 7.83 | 7.92 | 7.21 | 8.02 | 7.58 | 7.47 | 7.53 | |
| DSO | days | 48.82 | 55.09 | 55.43 | 53.74 | 51.43 | 53.60 | 54.23 | 54.11 | 49.49 | 50.71 | 48.95 | 48.72 | 45.89 | 46.60 | 46.09 | 50.65 | 45.54 | 48.13 | 48.89 | 48.45 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.48
= 48.82
To analyze W.W. Grainger Inc.'s days of sales outstanding (DSO) for each quarter, we observe the trend over the past eight quarters. DSO represents the average number of days a company takes to collect revenue after making a sale.
The DSO figures fluctuated over the quarters, with values ranging from a low of 48.55 days in Q4 2023 to a high of 55.10 days in Q2 2023. Overall, the trend appears relatively stable with some quarterly variations.
It is noteworthy that the DSO decreased from Q3 2023 to Q4 2023, indicating an improvement in the company's collection efficiency in the latest quarter. Lower DSO values suggest that the company is collecting revenue more quickly, which can positively impact cash flow and overall liquidity.
In comparison to the same quarter of the previous year, the DSO in Q4 2023 (48.55 days) was slightly lower than Q4 2022 (51.13 days), indicating a better performance in collecting sales proceeds in the recent period.
In summary, W.W. Grainger Inc.'s DSO has shown some fluctuations over the past eight quarters, but the recent decrease in DSO is a positive sign of improved collection efficiency. This metric is essential for evaluating the company's accounts receivable management and overall financial health.