Whirlpool Corporation (WHR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.41 | 12.43 | 11.39 | 7.07 | 6.20 | |
| DSO | days | 29.41 | 29.38 | 32.03 | 51.63 | 58.88 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.41
= 29.41
Based on the data provided, Whirlpool Corporation's Days Sales Outstanding (DSO) have shown a positive trend, decreasing from 58.88 days as of December 31, 2020, to 29.41 days as of December 31, 2024. This indicates that the company has been improving its efficiency in collecting receivables from customers over this period.
The significant decline in DSO over the years suggests that Whirlpool has been successful in managing its accounts receivable effectively. A lower DSO generally indicates that the company is collecting payments from its customers more quickly, which could improve its cash flow and overall liquidity position.
The consistent decrease in DSO from 2020 to 2024 reflects the company's strong credit and collection policies and practices. This improvement may also be attributed to better customer relationships or more efficient invoicing and collection processes.
Overall, the declining trend in Whirlpool Corporation's DSO indicates improved efficiency in managing its accounts receivable, which could positively impact the company's financial performance and working capital management.
Peer comparison
Dec 31, 2024