AT&T Inc (T)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		11.90	10.53	7.63	7.08	8.00
DSO	days	30.68	34.66	47.85	51.58	45.60

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.90
= 30.68

Days of Sales Outstanding (DSO) is a key financial ratio that measures how long, on average, it takes a company to collect payment from its customers after making a sale. A lower DSO indicates that the company is able to collect payments more quickly, which is generally a positive sign of efficient accounts receivable management.

Looking at AT&T, Inc.'s DSO trend over the past five years, we observe a consistent improvement in its collection efficiency. The DSO has decreased from 45.60 days in 2019 to 30.68 days in 2023. This signifies that AT&T has been able to speed up its collection cycle, possibly through more effective credit policies, improved billing processes, or better customer relationships.

The declining trend in DSO reflects positively on AT&T's cash flow management and liquidity position. By collecting payments more promptly, the company can reduce the risk of bad debts and enhance its working capital efficiency. Additionally, a lower DSO may indicate strong customer relationships and creditworthiness, as customers are paying their dues in a timely manner.

Overall, the decreasing trend in AT&T's DSO over the past five years suggests improving accounts receivable management and efficiency in collecting payments, potentially contributing to the company's overall financial health and strength.