The Coca-Cola Company (KO)

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		13.42	12.88	11.12	9.46	12.33	10.60	—	—	11.01	—	—	—	10.50	8.75	8.92	8.39	9.38	8.27	7.22	9.01
DSO	days	27.20	28.33	32.83	38.60	29.60	34.43	—	—	33.16	—	—	—	34.76	41.73	40.93	43.50	38.89	44.13	50.58	40.52

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.42
= 27.20

To analyze Coca-Cola Co's Days of Sales Outstanding (DSO) over the past eight quarters, we observe a general trend of fluctuating DSO values. In Q1 2022, the DSO was relatively high at 42.22 days, indicating that it took the company approximately 42 days to collect its outstanding sales. Subsequently, there was a decreasing trend in the following quarters, with DSO decreasing to 39.70 days in Q2 2022 and further dropping to 34.43 days in Q3 2022.

However, in Q4 2022, there was a slight increase in DSO to 29.60 days, signifying a longer collection period for sales. This upward trend continued into Q1 2023, with DSO reaching 38.60 days, the highest value in the provided data. The company then managed to decrease DSO in the following quarters, with the lowest value of 27.20 days observed in Q4 2023.

Overall, Coca-Cola Co's DSO has shown variability over the past eight quarters, with periods of both increasing and decreasing collection times. It is important for the company to manage its accounts receivable effectively to ensure timely collection of sales revenue and optimize cash flow.