Warner Bros Discovery Inc (WBD)

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		6.43	6.82	6.34	6.20	5.46	3.99	2.83	5.42	5.23	4.95	4.37	4.48	4.33	4.36	4.36	4.34	4.23	4.11	3.85	4.17
DSO	days	56.75	53.50	57.59	58.85	66.85	91.54	129.17	67.32	69.82	73.70	83.58	81.54	84.38	83.69	83.76	84.16	86.24	88.79	94.76	87.48

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.43
= 56.75

Warner Bros. Discovery Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes the company to collect revenue from its sales. A lower DSO indicates that the company is collecting payments more quickly, while a higher DSO suggests a slower collection process.

Looking at the trend in DSO over the past eight quarters, we observe fluctuations in the collection efficiency of Warner Bros. Discovery Inc. In Q4 2023, the DSO stood at 64.59 days, showing improvement compared to the previous quarter. This decrease in DSO indicates that the company was able to collect revenue from sales more efficiently in Q4 2023.

Analyzing further, compared to the same quarter in the previous year, Q4 2022, there has been a significant improvement in DSO. This suggests that Warner Bros. Discovery Inc has made progress in its collection process over the year.

It is noteworthy that the DSO reached its peak in Q2 2022 at 133.15 days, indicating a prolonged collection period during that quarter. However, since then, the company has managed to reduce the DSO consistently, reflecting better management of account receivables.

Overall, Warner Bros. Discovery Inc's improving trend in DSO is a positive signal, as it shows that the company is efficiently managing its collections and converting sales into cash more swiftly in recent quarters.