Verizon Communications Inc (VZ)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.94	5.15	5.58	5.60	5.36
DSO	days	73.95	70.82	65.37	65.14	68.05

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.94
= 73.95

Verizon Communications Inc's Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently the company is managing its accounts receivable. A lower DSO indicates that the company is collecting payments from customers faster, which is generally favorable.

Looking at the historical trend of Verizon's DSO from December 31, 2020, to December 31, 2024, we can see a slight decrease in DSO from 68.05 days in 2020 to 65.14 days in 2021. This implies that Verizon was able to collect payments from its customers more quickly in 2021 compared to 2020.

In 2022, the DSO increased slightly to 65.37 days, but still remained at a relatively low level. However, in 2023 and 2024, there was a noticeable increase in DSO to 70.82 days and 73.95 days, respectively. This could suggest that Verizon may be experiencing difficulties in collecting payments from customers on time, which could potentially impact its cash flow and liquidity.

Overall, while Verizon's DSO has shown some fluctuations over the years, it is essential for the company to closely monitor and manage its accounts receivable to ensure efficient cash flow management and financial stability.