PPG Industries Inc (PPG)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.53 | 5.31 | 5.37 | 5.06 | 5.49 | |
| DSO | days | 66.05 | 68.74 | 68.02 | 72.21 | 66.46 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.53
= 66.05
To analyze PPG Industries, Inc.'s Days Sales Outstanding (DSO) over the past five years, it is observed that there has been a fluctuating trend:
1. In 2023, the DSO decreased to 65.59 days from 68.30 days in 2022, indicating an improvement in the company's collection efficiency. This may suggest that PPG Industries managed its accounts receivable more effectively in 2023.
2. Comparing 2023 to 2021 and 2020, where DSO was 68.47 days and 71.92 days, respectively, there is a noticeable downward trend in the number of days it takes for PPG Industries to collect its sales revenue. This trend implies a positive development in the company's receivables management over the years.
3. However, in 2019, the DSO was lower at 66.42 days compared to 2023. This suggests that the company may have been more efficient in collecting sales revenue in 2019 than in 2023.
In summary, although there have been fluctuations in PPG Industries' DSO over the last five years, the trend shows an overall improvement in the company's ability to collect outstanding sales revenue efficiently, with 2023 showing a positive decline in DSO compared to the previous years.
Peer comparison
Dec 31, 2023