McDonald’s Corporation (MCD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.25 | 10.96 | 12.40 | 9.10 | 9.61 | |
| DSO | days | 35.62 | 33.30 | 29.43 | 40.10 | 38.00 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.25
= 35.62
The Days Sales Outstanding (DSO) ratio for McDonald's Corp has shown a fluctuating trend over the past five years. In 2023, the DSO stands at 35.62 days, which is higher compared to 2022 and 2021, indicating that the company takes longer to collect its accounts receivable. However, the DSO is lower than in 2020 and 2019, suggesting an improvement in receivables turnover efficiency.
The increase in DSO from 2021 to 2023 may signal potential challenges in collecting revenues promptly, possibly due to changes in customer payment behaviors or credit policies. It is important for McDonald's to closely monitor and manage its receivables collection process to prevent cash flow disruptions and ensure financial stability.
Overall, while the DSO ratio for McDonald's has varied over the years, it is essential for the company to continue monitoring and optimizing its accounts receivable management to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2023