International Business Machines (IBM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.21 | 8.01 | 4.26 | 3.83 | 2.94 | |
| DSO | days | 44.45 | 45.58 | 85.68 | 95.32 | 123.95 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.21
= 44.45
The Days Sales Outstanding (DSO) of International Business Machines has shown a declining trend over the past five years based on the provided data.
As of December 31, 2020, the DSO stood at 123.95 days, which decreased to 95.32 days by December 31, 2021. This indicates an improvement in the company's efficiency in collecting its accounts receivable.
By December 31, 2022, the DSO further decreased to 85.68 days, signaling continued progress in managing receivables. The trend continued with a significant drop to 45.58 days by December 31, 2023, demonstrating a considerable enhancement in the company's ability to convert receivables into cash quicker.
By the end of December 31, 2024, the DSO reached its lowest point at 44.45 days, showcasing the highest efficiency in the collection of outstanding sales. This suggests that IBM has been successful in streamlining its accounts receivable processes and maintaining strong cash flow management.
Overall, the decreasing trend in DSO over the period reflects positively on IBM's liquidity position and efficiency in managing its working capital.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Average Receivable Collection Period