United Rentals Inc (URI)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.51	6.43	5.81	5.79	6.49
DSO	days	56.06	56.79	62.83	63.00	56.27

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.51
= 56.06

The days of sales outstanding (DSO) for United Rentals Inc have shown some fluctuations over the past five years. As of December 31, 2020, the DSO stood at 56.27 days, indicating that on average, it took approximately 56 days for the company to collect its outstanding sales revenues.

By December 31, 2021, the DSO increased to 63.00 days, suggesting a slight deterioration in the company's collection efficiency. However, in the subsequent years, there was a notable improvement as the DSO decreased to 62.83 days by December 31, 2022, 56.79 days by December 31, 2023, and further down to 56.06 days by December 31, 2024.

The downward trend in DSO from 2022 to 2024 indicates that United Rentals Inc has been more effective in managing its accounts receivable and collecting payments from customers promptly. A lower DSO reflects a faster turnover of accounts receivable, which can enhance cash flow and liquidity for the company.

Overall, the trend in DSO for United Rentals Inc shows variability but with a positive trajectory in recent years, signaling improvements in the efficiency of the company's credit and collection processes.