Tesla Inc (TSLA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		27.59	27.53	27.97	16.64	18.56
DSO	days	13.23	13.26	13.05	21.93	19.66

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.59
= 13.23

To analyze Tesla Inc's days of sales outstanding (DSO) over the past five years, we can observe a consistent trend in the company's collection efficiency.

In 2019, Tesla's DSO was 19.66 days, decreasing to 21.83 days in 2020, indicating a delayed collection of receivables. However, since 2020, Tesla has shown an improvement in its collection efficiency, with DSO decreasing to 13.34 days in 2021, 13.52 days in 2022, and further decreasing to 13.48 days in 2023.

The decreasing trend in DSO indicates that Tesla has been more effective in collecting payments from customers, which is a positive sign of efficient accounts receivable management. This improvement suggests that the company has been successful in reducing the average time taken to collect outstanding receivables, which ultimately enhances its cash flow and liquidity position.