Stryker Corporation (SYK)

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		5.44	6.07	5.97	5.89	5.18	5.78	5.61	5.83	5.66	5.92	5.99	5.63	5.31	5.86	6.39	5.65	5.14	5.97	5.90	6.08
DSO	days	67.04	60.13	61.18	61.92	70.53	63.10	65.12	62.63	64.47	61.68	60.98	64.88	68.70	62.27	57.15	64.58	70.94	61.16	61.88	60.08

December 31, 2023 calculation

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

To analyze Stryker Corp.'s Days of Sales Outstanding (DSO) over the latest eight quarters, we calculated the average DSO for each quarter.

The average DSO for Q4 2023 was 67.04 days, higher than the previous quarter's average of 60.13 days. This indicates that Stryker Corp. took longer to collect its accounts receivable in Q4 2023 compared to Q3 2023.

Looking at the trend over the past eight quarters, we observe fluctuations in DSO, with some quarters showing an increasing trend and others showing a decreasing trend. In general, the DSO has not shown a consistent pattern over this period.

A higher DSO can indicate inefficiencies in accounts receivable management, potentially resulting in cash flow challenges and increased credit risk. Conversely, a lower DSO could suggest that the company is efficient in collecting its accounts receivable, leading to improved cash flow and lower credit risk.

It is essential for investors and stakeholders to monitor changes in DSO over time to assess the company's ability to manage its accounts receivable effectively and maintain healthy cash flow.