Lockheed Martin Corporation (LMT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 31.69 | 26.34 | 34.15 | 33.06 | 25.59 | |
| DSO | days | 11.52 | 13.86 | 10.69 | 11.04 | 14.26 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.69
= 11.52
Based on the provided data, Lockheed Martin Corp.'s days of sales outstanding (DSO) has shown variability over the past five years. DSO represents the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster collection of receivables, which is generally favorable.
In 2023, the DSO was 11.52 days, which represents a decrease from 13.86 days in 2022. This suggests an improvement in the company's ability to collect revenue from customers. Comparing 2023 to 2021, the DSO increased slightly from 10.69 days to 11.52 days, indicating a longer period for collecting receivables. Furthermore, the DSO in 2023 was comparable to 11.04 days in 2020, and notably lower than 14.26 days in 2019.
Overall, the trend in Lockheed Martin Corp.'s DSO indicates a fluctuation in the company's ability to efficiently collect revenue over the past five years. The 2023 decrease in DSO compared to 2022 is a positive sign, but the slight increase from 2021 indicates the need for continued monitoring of the company's receivables management to ensure optimal cash flow and liquidity.
See also:
Lockheed Martin Corporation Average Receivable Collection Period