McDonald’s Corporation (MCD)

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		10.25	11.13	11.03	11.28	10.96	12.31	12.85	14.20	12.40	12.32	12.02	11.32	9.10	8.05	6.78	12.37	9.57	10.52	10.20	10.49
DSO	days	35.62	32.79	33.09	32.35	33.30	29.65	28.41	25.71	29.43	29.63	30.35	32.26	40.10	45.37	53.87	29.50	38.14	34.69	35.78	34.78

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.25
= 35.62

Days of sales outstanding (DSO) is a metric that measures the average number of days it takes for a company to collect payment after making a sale. McDonald's Corp's DSO has shown a fluctuating trend over the past eight quarters. In Q4 2023, the DSO increased to 35.62 days from 32.79 days in Q3 2023. This indicates that it took McDonald's longer to collect payment from its customers in the most recent quarter.

Comparing the DSO in Q4 2023 to the same quarter in the previous year (Q4 2022), there is a slight increase from 33.30 days to 35.62 days. The increasing trend in DSO could suggest potential issues with the company's accounts receivable management or potential challenges in collecting payments efficiently.

On a positive note, the DSO in Q4 2023 is still lower than the peak seen in Q1 2022 at 32.35 days. However, the trend of increasing DSO over the past two quarters may warrant further investigation to ensure that the company's cash flow and liquidity are not being negatively impacted by delayed payments from customers.