Altria Group (MO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 330.90 | 500.79 | 514.94 | 182.07 | 156.78 | |
| DSO | days | 1.10 | 0.73 | 0.71 | 2.00 | 2.33 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 330.90
= 1.10
To analyze Altria Group Inc.'s Days Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend in the collection efficiency of accounts receivable.
In 2023, the company's DSO significantly decreased to 1.06 days compared to the prior year's 25.73 days. This sharp reduction indicates improved efficiency in converting credit sales into cash and faster collection of receivables.
In 2022, the DSO spiked to 25.73 days, suggesting a delay in collecting payments from customers compared to previous years. This could potentially signal challenges in credit management or a lengthening of the collection period.
In 2021, the DSO dropped to 0.66 days, reflecting an exceptionally efficient collection process and a swift conversion of sales into cash. This could indicate proactive measures to manage receivables effectively.
In 2020 and 2019, the DSO stood at 1.91 days and 2.21 days, respectively, indicating relatively stable collection periods compared to the exceptional performance seen in 2021 and 2023.
Overall, the fluctuation in Altria Group Inc.'s DSO highlights the importance of monitoring accounts receivable management and efficiency in collecting payments from customers promptly. The company's ability to maintain a low DSO indicates better liquidity and potential strength in managing credit and collection processes.
Peer comparison
Dec 31, 2023