PPG Industries Inc (PPG)
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 | 5.53 | 4.95 | 4.64 | 4.90 | 5.31 | 4.99 | 4.62 | 4.74 | 5.37 | 4.87 | 4.49 | 4.71 | 5.06 | 4.82 | 5.18 | 5.31 | 5.49 | 4.99 | 4.53 | 4.76 | |
| DSO | days | 66.05 | 73.70 | 78.65 | 74.53 | 68.69 | 73.21 | 78.99 | 76.95 | 68.02 | 74.92 | 81.23 | 77.50 | 72.15 | 75.71 | 70.47 | 68.74 | 66.48 | 73.17 | 80.53 | 76.73 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.53
= 66.05
To analyze PPG Industries, Inc.'s days of sales outstanding (DSO) over the past eight quarters, we can observe a fluctuating trend in the collection period for accounts receivable.
In the most recent quarter, Q4 2023, the DSO improved to 65.59 days compared to the previous quarter, Q3 2023, where it was 72.92 days. This indicates that PPG Industries has been able to collect its accounts receivable more efficiently in Q4 2023.
Looking further back, we see that DSO was highest in Q2 2022 at 79.36 days and has shown a downward trend since then. However, it is worth noting that while there have been fluctuations in DSO over the quarters, the overall trend seems to be gradually improving.
The reduction in DSO indicates that PPG Industries may have implemented better credit policies or improved collection efforts, leading to a shorter collection period. A lower DSO is generally a positive sign as it reflects efficient accounts receivable management and can help improve the company's cash flow and liquidity position.
It is essential for PPG Industries to continue monitoring and managing its DSO to ensure timely collection of receivables and maintain a healthy working capital cycle.
Peer comparison
Dec 31, 2023