Stryker Corporation (SYK)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.44	5.18	5.66	5.31	5.14
DSO	days	67.04	70.53	64.47	68.70	70.94

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.44
= 67.04

Days Sales Outstanding (DSO) is a financial metric that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates a faster collection of accounts receivable, which is generally favorable as it signifies efficient cash flow management.

Looking at the trend in Stryker Corp.'s DSO over the past five years, we observe fluctuations in the metric. In 2023, the DSO decreased to 67.04 days from 70.53 days in 2022, showcasing an improvement in the collection of accounts receivable. This reduction suggests that the company may have enhanced its credit and invoicing processes, leading to quicker revenue collection.

Comparing the DSO of 67.04 days in 2023 to historical data, we find that it is relatively lower than the DSO reported in 2020 and 2019, indicating continued progress in managing accounts receivable efficiently. However, it is slightly higher than the DSO in 2021, which was 64.47 days.

Overall, the decreasing trend in Stryker Corp.'s DSO reflects positively on the company's ability to convert sales into cash efficiently. Continued monitoring of this metric and efforts to keep DSO at an optimal level will be crucial for maintaining strong cash flow management in the future.