United Parcel Service Inc (UPS)

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		8.03	9.76	9.96	9.54	7.92	9.10	8.69	8.74	7.70	9.01	9.12	8.84	7.87	8.93	8.38	9.23	7.46	9.23	8.98	9.45
DSO	days	45.43	37.38	36.64	38.27	46.06	40.13	42.01	41.77	47.41	40.49	40.01	41.30	46.36	40.88	43.54	39.56	48.94	39.55	40.63	38.64

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.03
= 45.43

Based on the data provided, United Parcel Service, Inc.'s Days Sales Outstanding (DSO) has shown some fluctuations over the past eight quarters. In Q4 2023, the DSO was 45.01 days, which was higher compared to the previous quarter indicating a slight elongation in the collection period. However, it is noteworthy that the DSO has generally been maintained within a range between 36 to 45 days over the last two years.

The DSO measures the average number of days it takes for a company to collect its accounts receivable, reflecting the efficiency of its credit and collection policies. A lower DSO implies faster collection and better liquidity, while a higher DSO may indicate potential issues with outstanding receivables and cash flow management.

United Parcel Service, Inc. should continue to monitor its DSO closely to ensure efficient management of its accounts receivable and seek opportunities to reduce collection times further. Comparing the DSO with industry benchmarks or historical trends can provide valuable insights into the company's liquidity and credit management performance.

United Parcel Service Inc (UPS)

Days of sales outstanding (DSO)

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