Motorola Solutions Inc (MSI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.63	5.79	5.65	5.13	5.29
DSO	days	64.83	63.01	64.62	71.20	68.96

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.63
= 64.83

The days of sales outstanding (DSO) for Motorola Solutions Inc have shown a relatively stable trend over the past five years. The DSO stood at 64.02 days as of December 31, 2023, reflecting a slight increase compared to the previous year's DSO of 62.69 days.

Looking back at the trend, the DSO has generally fluctuated within a narrow range over the years, ranging from 61.91 days in 2021 to 68.43 days in 2020. This indicates that the company has been able to efficiently manage its accounts receivable and collect payments from customers within a consistent timeframe.

A lower DSO suggests that Motorola Solutions Inc is collecting payments from its customers more quickly, which can be a positive sign of effective credit management and liquidity. Conversely, a higher DSO could indicate potential issues with accounts receivable collections or customer creditworthiness.

Overall, the stable DSO trend for Motorola Solutions Inc over the years indicates a consistent and effective accounts receivable management strategy, contributing to the company's overall financial health and operational efficiency.