Verizon Communications Inc (VZ)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.94	5.01	5.09	5.14	5.15	5.68	5.82	5.96	5.58	5.73	3.64	5.69	5.60	6.05	6.25	5.76	5.36	5.68	5.72	5.52
DSO	days	73.95	72.85	71.66	71.03	70.82	64.24	62.69	61.25	65.37	63.69	100.27	64.18	65.14	60.35	58.40	63.41	68.05	64.31	63.79	66.13

December 31, 2024 calculation

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

The days of sales outstanding (DSO) is a key financial metric that measures the average number of days it takes for a company to collect payment after making a sale. For Verizon Communications Inc, the DSO trend over the past few years shows some fluctuation.

Verizon's DSO was 66.13 days as of March 31, 2020, and gradually decreased to 58.40 days by June 30, 2021. This indicates an improvement in the company's efficiency in collecting payments from customers during this period.

However, there was a significant spike in DSO to 100.27 days by June 30, 2022. Such a sharp increase could suggest potential issues in accounts receivable management or delays in customer payments that need to be addressed.

The company managed to bring down the DSO to 61.25 days by March 31, 2023, showing a positive trend in collections efficiency. The DSO then increased slightly to 73.95 days by December 31, 2024, indicating a longer time taken to collect payments compared to the previous periods.

Overall, while Verizon's DSO has shown fluctuations over the years, it is essential for the company to monitor and manage this metric effectively to ensure timely collection of receivables and maintain healthy cash flow levels.