Verizon Communications Inc (VZ)

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		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	5.19	5.32	5.26	5.36
DSO	days	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	70.39	68.66	69.40	68.06

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.15
= 70.82

To analyze Verizon Communications Inc's days of sales outstanding (DSO) performance, we look at the trend over the previous eight quarters. DSO measures how efficiently a company collects outstanding accounts receivable.

Verizon's DSO has shown a relatively stable trend over the quarters, hovering around the mid-60s for the most part. In Q4 2023, DSO increased to 68.34 days compared to the previous quarter's 64.24 days. This suggests that it took Verizon slightly longer to collect its accounts receivable in Q4 2023.

Although there was a slight uptick in Q4 2023, it is important to note that Verizon's DSO levels have generally remained within a narrow range over the past two years. This indicates a consistent and effective accounts receivable management strategy.

Overall, while the recent increase in DSO warrants monitoring, Verizon's historical performance suggests that the company has been successful in efficiently managing its accounts receivable collection process.