AT&T Inc (T)

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		11.90	13.59	13.05	11.86	10.53	10.58	10.70	7.43	7.63	7.36	8.30	8.02	7.08	8.92	9.16	9.00	8.00	7.96	8.20	7.44
DSO	days	30.68	26.87	27.96	30.77	34.66	34.48	34.10	49.15	47.85	49.62	43.96	45.50	51.58	40.91	39.86	40.56	45.60	45.88	44.51	49.06

December 31, 2023 calculation

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

Days of Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO typically suggests more efficient credit and collection policies, while a higher DSO may indicate potential issues with receivables management or customer creditworthiness.

Analyzing the DSO trend for AT&T, Inc. over the past eight quarters, we observe fluctuations in the collection period. In Q4 2023, the DSO was 30.68 days, slightly higher than the previous quarter but lower compared to Q1 2023 and Q4 2022. This suggests that AT&T took slightly longer to collect payments in Q4 2023.

The DSO decreased in Q3 2023 to 28.86 days, indicating an improvement in the company's collection process compared to the previous quarter. Similarly, in Q2 2023, the DSO was 30.04 days, suggesting efficient collection practices relative to Q1 2023.

However, the DSO increased notably in Q1 2023 to 33.06 days, which may raise concerns about AT&T's ability to collect receivables promptly. Moreover, the DSO was 34.66 days in Q4 2022, signifying a prolonged collection period compared to the previous quarter.

Comparing recent quarters to prior-year periods, the DSO has generally trended lower, indicating enhanced efficiency in receivables management. Notably, Q3 and Q2 2022 had relatively low DSO figures of 27.94 days and 29.95 days, respectively, indicating strong collection performance during those periods.

Overall, while fluctuations in DSO are normal in the telecommunications industry, AT&T should continue to monitor and potentially improve its collections process to ensure timely payment from customers and optimize working capital management.