Waters Corporation (WAT)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		3.99	4.05	4.00	4.47	4.03
DSO	days	91.58	90.17	91.23	81.73	90.62

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.99
= 91.58

The Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect its accounts receivable. Waters Corporation's DSO has shown some fluctuations over the past five years based on the provided data.

As of December 31, 2020, the DSO was 90.62 days, indicating that on average, it took the company approximately 90.62 days to collect its accounts receivable. Over the following years, there was a slight improvement as the DSO decreased to 81.73 days by December 31, 2021, showing that the company was collecting payments more efficiently.

However, there was an increase in the DSO to 91.23 days by December 31, 2022. This uptick suggests that Waters Corporation may have experienced challenges in collecting payments promptly during that period. The DSO remained relatively high at 90.17 days on December 31, 2023, indicating continued difficulties in AR collections.

By December 31, 2024, the DSO increased slightly to 91.58 days, signaling that the company still faced issues with collecting accounts receivable in a timely manner.

Overall, the trend in Waters Corporation's DSO over the five-year period indicates some volatility and challenges in managing accounts receivable collections effectively. Further analysis and monitoring of DSO trends will be important to assess the company's financial health and efficiency in managing working capital.