Lumen Technologies Inc (LUMN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.93	11.33	12.09	10.05	9.27
DSO	days	40.87	32.20	30.18	36.30	39.36

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.93
= 40.87

Lumen Technologies Inc's Days Sales Outstanding (DSO) has shown a decreasing trend from 36.81 days in 2019 to 33.05 days in 2023. This indicates that the company has been more efficient in collecting its accounts receivable over the years. Lower DSO values suggest that Lumen is collecting payments from its customers more quickly, which could improve its cash flow and liquidity position.

However, it is worth noting that there was a slight increase in DSO from 2021 to 2023, which might indicate a potential slowdown in the collection of receivables during that period. Lumen should keep an eye on this metric to ensure that there are no significant delays in receiving payments from customers, as a higher DSO could tie up cash and impact the company's working capital management.

Overall, a decreasing trend in DSO is generally a positive sign, but management should monitor any fluctuations to ensure efficient working capital management and timely collection of accounts receivable.