Philip Morris International Inc (PM)

Days of Sales Outstanding (DSO) is a key financial ratio used to evaluate how efficiently a company is managing its accounts receivable. For Philip Morris International Inc, the trend in DSO from December 31, 2020, to December 31, 2024, shows varying levels of efficiency in collecting payments from customers.

- In 2020, the DSO was 14.04 days, indicating that on average, it took Philip Morris 14.04 days to collect payments from its customers.
- This number improved slightly in 2021 to 13.99 days, suggesting a slightly more efficient collections process.
- However, in 2022, the DSO increased to 17.23 days, which may indicate a slower collections process compared to the previous year.
- The trend worsened significantly in both 2023 and 2024, with DSO figures of 47.41 days and 45.41 days, respectively. These high DSO numbers could raise concerns about Philip Morris's ability to collect payments promptly.

Overall, the increasing trend in DSO from 2020 to 2024 may indicate potential challenges in managing accounts receivable efficiently. A high DSO can tie up cash flow and indicate potential issues with credit policies, collections procedures, or customer payment delays. It is important for Philip Morris International Inc to closely monitor and address the factors contributing to the increasing DSO to ensure healthy cash flow management and financial performance.

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Dec 31, 2024