ODP Corp (ODP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 16.06 | 14.98 | 16.06 | — | 15.82 | 14.24 | 14.87 | 15.15 | 17.88 | 18.88 | 13.89 | 13.56 | 15.31 | 14.95 | 14.89 | 12.40 | 7.46 | 6.15 | 12.01 | 11.50 | |
| DSO | days | 22.73 | 24.36 | 22.72 | — | 23.07 | 25.63 | 24.54 | 24.09 | 20.41 | 19.34 | 26.28 | 26.92 | 23.83 | 24.41 | 24.51 | 29.43 | 48.92 | 59.34 | 30.39 | 31.74 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.06
= 22.73
To analyze ODP Corp's Days of Sales Outstanding (DSO), we first note that DSO is a measure of how long, on average, it takes a company to collect payment after a sale is made. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable.
Looking at the data provided, we observe fluctuations in the DSO over the past five years. In the most recent period, Dec 31, 2023, the DSO was 22.73 days, showing an improvement from the previous quarter's DSO of 24.36 days. This suggests that ODP Corp has been more effective in collecting payments from customers in a timely manner.
Furthermore, comparing the current DSO with historical figures, we see a downward trend in DSO from levels as high as 59.34 days in Sep 30, 2019. This trend indicates that ODP Corp has been managing its accounts receivable more efficiently over time.
However, there are instances of higher DSO figures in certain quarters, such as in Dec 31, 2019 and Mar 31, 2020, which could indicate delays in collecting payments during those periods.
Overall, the current DSO of 22.73 days suggests that ODP Corp has been successful in maintaining a relatively low DSO, indicating efficient management of accounts receivable and prompt collection of payments from customers. Continued monitoring of DSO trends will be essential to ensure the company's financial health and liquidity position.
Peer comparison
Dec 31, 2023