ODP Corp (ODP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 16.04 | 15.82 | 17.05 | 15.31 | 7.45 | |
| DSO | days | 22.75 | 23.08 | 21.41 | 23.84 | 49.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.04
= 22.75
The days of sales outstanding (DSO) for ODP Corp have shown variability over the past five years. The trend indicates that the company's collection efficiency has improved since 2019 when DSO was at 49.01 days, significantly higher compared to subsequent years.
In 2021, the DSO decreased to 21.41 days, suggesting a more efficient collection of accounts receivable. However, there was a slight increase in 2022 to 23.08 days, indicating a potential delay in collecting payments from customers. The most recent data for 2023 shows a further decrease in DSO to 22.75 days, reflecting a positive trend towards quicker collection of receivables.
Overall, the downward trend in DSO from 2019 to 2023 suggests that ODP Corp has been managing its accounts receivable more effectively and efficiently. However, it is important for the company to continue monitoring and improving its collections process to maintain a healthy balance between sales growth and cash flow management.
Peer comparison
Dec 31, 2023