United Rentals Inc (URI)

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		6.43	6.10	6.17	6.10	5.81	5.75	6.12	6.34	5.79	5.75	6.29	6.75	6.49	6.58	7.35	6.62	6.11	5.77	5.79	5.67
DSO	days	56.79	59.79	59.18	59.86	62.83	63.47	59.68	57.60	63.00	63.43	58.00	54.09	56.27	55.50	49.68	55.11	59.72	63.27	63.05	64.38

December 31, 2023 calculation

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

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

Analyzing the DSO trend for United Rentals, Inc. over the past eight quarters, we observe a general fluctuation in the values. From Dec 31, 2022, to Jun 30, 2023, there was a slight increase in DSO, which suggests a lengthening in the collection period for receivables. However, the DSO decreased slightly by the end of the most recent quarter, indicating a potential improvement in the company's collection efficiency.

It is essential to compare the DSO with industry averages to gain a better understanding of United Rentals, Inc.'s performance. Additionally, a thorough analysis of the company's credit and collection policies and its customer base may provide valuable insights into the reasons behind the fluctuations in DSO.