Tesla Inc (TSLA)

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		27.59	37.97	27.28	28.69	27.53	34.06	32.15	26.79	27.97	23.74	19.56	18.92	16.64	15.95	17.20	20.28	18.56	21.65	21.74	21.58
DSO	days	13.23	9.61	13.38	12.72	13.26	10.72	11.35	13.62	13.05	15.37	18.66	19.30	21.93	22.88	21.23	18.00	19.66	16.86	16.79	16.91

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which generally reflects positively on its liquidity and efficiency in managing its accounts receivable.

Analyzing Tesla Inc's DSO over the past eight quarters, we observe some fluctuations in the trend. In the most recent quarter, ending December 31, 2023, the DSO increased to 13.48 days from 9.77 days in the previous quarter, ending September 30, 2023. This suggests that the company took longer to collect payments from its customers in the most recent period.

Comparing the DSO to the same quarter in the previous year, we see that it has slightly increased from 13.52 days in December 2022 to 13.48 days in December 2023. This indicates a relatively stable collection period year-over-year.

Moreover, it is noteworthy that the DSO was at its lowest in the quarter ending September 30, 2022, at 11.10 days, and peaked at 14.05 days in the quarter ending March 31, 2022, demonstrating some variability in the company's collection period over the past eight quarters.

In conclusion, while Tesla Inc's DSO has shown some variability over the past two years, the company's ability to collect payments from its customers has remained relatively stable. However, the recent increase in DSO warrants attention, and it would be prudent to monitor future trends to assess the company's efficiency in managing its accounts receivable.