International Business Machines (IBM)
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 | 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 | 3.68 | 3.15 | 2.82 | |
| DSO | days | 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 | 99.18 | 115.97 | 129.60 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.01
= 45.58
Days Sales Outstanding (DSO) is a key financial metric that provides insight into how efficiently a company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly, while a higher DSO suggests delays in collecting funds.
Based on the data provided for International Business Machines Corp. over the past eight quarters, we can observe fluctuations in the DSO metric. In Q4 2023, the DSO stands at 46.34 days, which is higher compared to the previous quarter at 36.83 days. This increase may indicate potential challenges in collecting payments from customers during this period.
Looking at the trend over the past two years, the DSO has shown some variability, ranging from a low of 36.83 days in Q3 2023 to a high of 49.82 days in Q3 2022. The company seems to have made progress in reducing DSO in the recent quarters, except for the current quarter, which experienced a slight increase.
It is important for investors and stakeholders to monitor DSO trends as it can provide insights into the company's liquidity, credit risk, and overall efficiency in managing accounts receivable. Further analysis and comparison with industry benchmarks can help in evaluating the effectiveness of International Business Machines Corp.'s accounts receivable management practices.
Peer comparison
Dec 31, 2023
See also:
International Business Machines Average Receivable Collection Period (Quarterly Data)