United Rentals Inc (URI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.43	5.81	5.79	6.49	6.11
DSO	days	56.79	62.83	63.00	56.27	59.72

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.43
= 56.79

To analyze United Rentals, Inc.'s days of sales outstanding (DSO) over the past five years, we observe a decreasing trend in DSO from 2019 to 2021, which suggests an improvement in the company's accounts receivable management. However, in 2022, there was a slight increase in DSO, indicating a potential slowdown in collecting receivables. The latest data for 2023 shows a further decrease in DSO compared to 2022, suggesting a return to more efficient collections.

Overall, the downward trend in DSO up to 2021 indicates that United Rentals, Inc. was managing its accounts receivable effectively, but the uptick in 2022 could signify a need for the company to reassess its credit policies or collection procedures. Nonetheless, the decrease in DSO in 2023 suggests a positive development towards efficient working capital management and potential improvement in cash flow.