Ryder System Inc (R)

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO value indicates that a company is collecting its receivables more quickly, while a higher value suggests that the company is taking longer to collect payments.

Analyzing the DSO trend of Ryder System Inc over the past five years, we observe the following:
- As of December 31, 2020, the DSO stood at 51.25 days, indicating that on average, it took the company about 51 days to collect its accounts receivable.
- By December 31, 2021, the DSO increased to 55.34 days, which suggests that Ryder System Inc took longer to collect payments from customers compared to the previous year.
- The DSO improved significantly by December 31, 2022, dropping to 48.93 days. This decrease may indicate that the company enhanced its receivables management processes and collected payments more efficiently.
- However, the trend reversed by December 31, 2023, with DSO rising to 53.09 days, which could indicate potential challenges in collecting receivables promptly.
- The DSO remained relatively stable by December 31, 2024, at 53.76 days, suggesting that the company's accounts receivable collection efficiency did not improve significantly during that period.

Overall, fluctuations in the DSO of Ryder System Inc over the last five years reflect changes in the company's ability to manage its accounts receivable effectively. Investors and stakeholders should monitor DSO trends as it provides insights into the company's cash flow management and potential liquidity risks.

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Dec 31, 2024