Telephone and Data Systems Inc (TDS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.20 | 4.81 | 4.30 | 4.39 | 4.98 | |
| DSO | days | 70.17 | 75.86 | 84.93 | 83.06 | 73.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.20
= 70.17
The days of sales outstanding (DSO) for Telephone And Data Systems, Inc. have shown a fluctuating trend over the past five years. In 2019, the DSO was 81.80 days, which decreased to 90.74 days in 2020 and further increased to 91.44 days in 2021. However, there was a noticeable improvement in 2022 with the DSO declining to 83.61 days before reaching 76.25 days in 2023.
The decreasing trend in DSO from 2021 to 2023 indicates that the company has become more efficient in collecting accounts receivable, which is a positive sign of effective credit management and faster turnover of receivables. A lower DSO implies that the company is collecting revenue from sales more quickly, potentially enhancing cash flow and liquidity.
Overall, the trend in DSO for Telephone And Data Systems, Inc. suggests an improved ability to convert credit sales into cash and highlights the company's focus on optimizing its working capital management.
Peer comparison
Dec 31, 2023