Meta Platforms Inc. (META)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.64 | 8.29 | 8.64 | 8.39 | 7.57 | |
| DSO | days | 37.87 | 44.01 | 42.24 | 43.51 | 48.21 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.64
= 37.87
The Days of Sales Outstanding (DSO) metric for Meta Platforms Inc. has shown a relatively favorable trend over the past five years. Starting at 48.21 days on December 31, 2020, the DSO decreased to 43.51 days by December 31, 2021, indicating an improvement in the company's ability to collect its accounts receivable efficiently.
Further progress was observed as the DSO continued to decline to 42.24 days by December 31, 2022. However, there was a slight increase in the metric to 44.01 days by December 31, 2023, which could suggest a temporary delay in receivables collection.
Ending on a positive note, the DSO decreased significantly to 37.87 days by December 31, 2024, signaling enhanced efficiency in converting sales into cash during that period. Overall, the decreasing trend in DSO reflects an improvement in Meta Platforms Inc.'s accounts receivable management and liquidity position over the analyzed period.
Peer comparison
Dec 31, 2024