Waters Corporation (WAT)

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		4.07	4.62	4.22	—	4.04	—	—	—	4.47	—	—	—	4.04	4.54	4.48	4.42	4.01	4.67	4.55	4.64
DSO	days	89.69	79.09	86.43	—	90.26	—	—	—	81.58	—	—	—	90.34	80.47	81.39	82.64	90.98	78.11	80.20	78.72

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.07
= 89.69

Days Sales Outstanding (DSO) is a key metric used to measure how long it takes a company to collect its accounts receivable. A lower DSO generally indicates that a company is able to collect its receivables more quickly, which is favorable for its cash flow and liquidity.

Analyzing the DSO trend of Waters Corp. over the past few quarters reveals some insights. In Q4 2023, the DSO stood at 86.69 days, which is higher compared to the previous quarter at 76.92 days. This increase may indicate that the company is taking longer to convert its sales into cash receipts, potentially affecting its working capital efficiency.

Comparing the DSO to the same quarter in the previous year, Q4 2022 had a slightly higher DSO at 88.78 days, suggesting an improvement in collections efficiency over the year. However, it is important to note that the DSO fluctuated throughout the quarters in 2023, with Q2 2023 showing a notable increase to 84.58 days compared to Q3 2023.

Overall, while Waters Corp.'s DSO has shown variability in recent quarters, it is essential for the company to monitor and potentially address any increasing trends to ensure effective management of accounts receivable and maintain healthy liquidity levels.