International Business Machines (IBM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.42 | 9.92 | 9.30 | 8.01 | 10.13 | 9.50 | 4.80 | 4.26 | 9.63 | 9.01 | 4.25 | 3.83 | 2.90 | 2.96 | 3.16 | 2.94 | 3.11 | 2.88 | 2.76 | 2.43 | |
| DSO | days | 43.34 | 36.78 | 39.26 | 45.58 | 36.04 | 38.40 | 76.07 | 85.68 | 37.92 | 40.53 | 85.84 | 95.32 | 125.74 | 123.17 | 115.45 | 123.95 | 117.32 | 126.60 | 132.11 | 150.48 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.42
= 43.34
International Business Machines (IBM) has seen fluctuations in its Days Sales Outstanding (DSO) metric over the past few years. DSO indicates the average number of days it takes for a company to collect revenue after a sale is made. A decreasing trend in DSO is generally considered favorable as it signifies faster cash conversion and more efficient receivables management.
From December 2019 to September 2021, IBM experienced a gradual decline in DSO, indicating improvements in its receivables collection process. However, there was a spike in DSO in the fourth quarter of 2021, which might suggest delays in customer payments or changes in sales terms.
Interestingly, IBM managed to significantly reduce its DSO in the first half of 2022, reaching exceptionally low levels in June. Such a sharp decrease could be attributed to improved credit control, enhanced billing processes, or a shift in customer payment behaviors.
Despite the impressive performance in the first half of 2022, IBM experienced a slight increase in DSO towards the end of the year and into 2023. This uptrend could indicate a need for the company to revisit its collections strategies or address any emerging credit risks.
By the end of December 2024, IBM managed to lower its DSO once again to 43.34 days, which suggests ongoing efforts to optimize cash flow and streamline receivables management. Overall, the company's DSO performance reflects a mixture of improvements and challenges in managing its accounts receivable efficiently over the analyzed period.
Peer comparison
Dec 31, 2024
See also:
International Business Machines Average Receivable Collection Period (Quarterly Data)