Weatherford International PLC (WFRD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.37 | 4.13 | 4.38 | 4.42 | 4.46 | |
| DSO | days | 83.61 | 88.36 | 83.35 | 82.61 | 81.82 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.37
= 83.61
The Days of Sales Outstanding (DSO) for Weatherford International PLC has shown a slight upward trend over the past five years, increasing from 81.82 days as of December 31, 2020, to 83.61 days as of December 31, 2024. This indicates that, on average, it takes the company a longer period to collect its accounts receivable over the years.
Although there was some fluctuation in the DSO numbers, with a peak of 88.36 days on December 31, 2023, the overall trend suggests potential challenges in efficiently managing the collection of outstanding invoices or receivables. This could have implications for the company's cash flow and liquidity position, as a higher DSO may lead to delayed incoming cash flows and increased working capital requirements.
It would be advisable for Weatherford International PLC to closely monitor and potentially improve its credit and collection policies or procedures to reduce the DSO figure and enhance its cash conversion cycle. A lower DSO would ultimately indicate a quicker turnover of accounts receivable and better management of working capital, contributing to improved financial health and efficiency.
Peer comparison
Dec 31, 2024