ManpowerGroup Inc (MAN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.89	3.85	3.80	3.65	3.96
DSO	days	93.72	94.87	96.16	99.87	92.12

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.89
= 93.72

Based on the data provided, ManpowerGroup's Days Sales Outstanding (DSO) has shown a slight improvement in the most recent fiscal year, decreasing from 94.57 days in 2022 to 93.21 days in 2023. This indicates that the company has been able to collect its accounts receivable more efficiently and quickly compared to the previous year.

Looking at a longer-term trend, the DSO has fluctuated over the past five years, with the highest DSO of 99.61 days in 2020 and the lowest DSO of 92.25 days in 2019. Despite some variations, the general trend seems to be fluctuating around the mid-90s range.

A lower DSO typically indicates that the company is collecting payments from its customers more quickly, which can improve cash flow and liquidity. It may suggest effective credit management policies or prompt invoicing and collection practices.

Analyzing the DSO trend over multiple years can provide insights into the company's efficiency in managing its accounts receivable and its overall financial health. It is important to continue monitoring this metric in the future to ensure a healthy balance between credit risk and cash flow optimization.