Philip Morris International Inc (PM)
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 | 12.30 | 15.53 | 19.03 | 21.80 | 21.18 | 21.10 | 20.98 | 22.78 | 26.08 | 19.26 | 17.58 | 18.75 | 21.13 | 19.50 | 18.67 | 23.64 | 21.17 | 20.44 | 18.29 | 21.57 | |
| DSO | days | 29.68 | 23.50 | 19.18 | 16.75 | 17.23 | 17.30 | 17.40 | 16.03 | 13.99 | 18.95 | 20.76 | 19.47 | 17.27 | 18.72 | 19.55 | 15.44 | 17.24 | 17.86 | 19.95 | 16.92 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.30
= 29.68
Days of Sales Outstanding (DSO) measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is typically viewed positively.
Analyzing the DSO trend for Philip Morris International Inc over the past eight quarters, we observe significant fluctuations. In Q3 2023, the DSO spiked to an alarmingly high level of 204.44 days, suggesting prolonged payment collection times. This sudden increase may raise concerns about the company's credit policies or customer payment delays during that period.
In contrast, the DSO improved substantially in Q4 2023, decreasing to 45.57 days, which is a positive sign indicating more efficient collections. This improvement could result from tighter credit control measures or a more effective invoicing and collection process.
Looking back further, Q2 2023 and Q1 2023 also showed higher DSO values compared to recent quarters, indicating potential challenges in timely collections during those periods. However, the DSO figures for Q4 2022 and Q1 2022 were relatively stable around the mid-50s range, suggesting consistent collection practices during those periods.
Overall, the fluctuating DSO trend of Philip Morris International Inc highlights the importance of closely monitoring and managing the company's accounts receivable processes to ensure optimal cash flow and financial performance. Further analysis and comparisons with industry benchmarks could provide additional insights into the efficiency of the company's credit and collection policies.
Peer comparison
Dec 31, 2023
See also:
Philip Morris International Inc Average Receivable Collection Period (Quarterly Data)