GXO Logistics Inc (GXO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Receivables turnover | 5.55 | 5.44 | 4.04 | |
| DSO | days | 65.79 | 67.06 | 90.43 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.55
= 65.79
The days of sales outstanding (DSO) for GXO Logistics Inc have shown a decreasing trend over the past four years, standing at 65.44 days as of December 31, 2023, compared to 66.85 days in 2022, 69.28 days in 2021, and 75.55 days in 2020. This indicates that the company has been collecting its accounts receivable more efficiently over the years, potentially improving its working capital management and liquidity position. A lower DSO figure implies that GXO Logistics is converting its sales into cash at a faster rate, which can be a positive sign of strong customer credit policies, effective collection efforts, and overall financial health. However, further analysis and comparison with industry benchmarks are necessary to fully assess the effectiveness of GXO Logistics' credit and collection processes.
Peer comparison
Dec 31, 2023