Stryker Corporation (SYK)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.67	5.44	5.18	5.66	5.31
DSO	days	64.41	67.04	70.53	64.47	68.70

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.67
= 64.41

To analyze Stryker Corporation's Days of Sales Outstanding (DSO) over the past five years, we observe a trend of fluctuation in the metric.

In 2020, the DSO stood at 68.70 days, witnessing a slight decrease to 64.47 days in 2021. This reduction implies that Stryker improved its collection efficiency, requiring fewer days to convert its accounts receivable into cash.

However, in 2022, the DSO increased to 70.53 days, indicating a delay in the collection of outstanding receivables. The company managed to bring this figure down to 67.04 days in 2023 before further reducing it to 64.41 days in 2024.

Overall, despite some fluctuations, Stryker Corporation has shown an ability to effectively manage its accounts receivable over the five-year period, with a general trend towards lower DSO figures in recent years. This suggests efficient collections procedures and a healthy working capital management strategy.