Meta Platforms Inc. (META)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.29 | 8.64 | 8.39 | 7.57 | 7.41 | |
| DSO | days | 44.01 | 42.24 | 43.51 | 48.21 | 49.23 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.29
= 44.01
Meta Platforms Inc's Days of Sales Outstanding (DSO) measures how efficiently the company is able to collect its accounts receivable.
The trend in DSO over the past five years shows a slight improvement, with the number of days decreasing from 49.14 days in 2019 to 43.75 days in 2023. This indicates that Meta Platforms Inc has become more efficient in converting its accounts receivable into cash over the years.
A lower DSO signifies that the company is able to collect payments from its customers more quickly, which can improve its cash flow and liquidity. It also suggests that the company has effective credit and collection policies in place.
Overall, the decreasing trend in DSO for Meta Platforms Inc is a positive sign of its operational efficiency and financial health in managing its accounts receivable.
Peer comparison
Dec 31, 2023