Weatherford International PLC (WFRD)
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 | 4.13 | 3.95 | 4.48 | 4.21 | 4.38 | 4.41 | 4.21 | 4.32 | 4.42 | 3.33 | 4.29 | 5.17 | 5.42 | 6.77 | 5.81 | 4.20 | 4.18 | 4.16 | 4.44 | 4.84 | |
| DSO | days | 88.36 | 92.39 | 81.40 | 86.73 | 83.35 | 82.79 | 86.77 | 84.46 | 82.61 | 109.58 | 85.03 | 70.67 | 67.31 | 53.89 | 62.82 | 86.97 | 87.38 | 87.70 | 82.18 | 75.43 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.13
= 88.36
Weatherford International plc's Days of Sales Outstanding (DSO) has shown some fluctuations over the past eight quarters. In Q3 2023, the DSO was 92.39 days, which was higher compared to the previous quarter at 86.43 days. This indicates that the company took longer to collect its accounts receivable in Q3 2023.
However, in Q2 2023, the DSO decreased to 81.40 days, showing a more efficient collection of receivables compared to Q1 2023, where the DSO was 86.73 days. This improvement may suggest better credit management or prompt payment from customers during that period.
Comparing the latest quarter to the same period in the previous year, Q4 2023 DSO at 83.35 days was slightly higher than Q4 2022 at 82.79 days. This indicates a marginal increase in the time taken to convert receivables into cash, which could potentially impact cash flow and working capital management.
Overall, monitoring DSO trends is essential for Weatherford International plc to assess the effectiveness of its credit and collection policies, optimize cash flow, and maintain healthy liquidity levels. fluctuations in DSO could provide insights into changing customer payment behaviors and potential risks to the company's financial health.
Peer comparison
Dec 31, 2023