Whirlpool Corporation (WHR)
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 | 12.43 | 9.32 | 10.19 | 10.63 | 11.40 | 8.36 | 7.66 | 7.53 | 7.07 | 6.88 | 7.13 | 6.79 | 6.21 | 6.96 | 9.62 | 10.50 | 9.42 | 8.11 | 8.67 | 9.33 | |
| DSO | days | 29.38 | 39.16 | 35.80 | 34.33 | 32.03 | 43.64 | 47.68 | 48.47 | 51.63 | 53.02 | 51.20 | 53.75 | 58.73 | 52.44 | 37.94 | 34.75 | 38.74 | 45.01 | 42.09 | 39.11 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.43
= 29.38
Whirlpool Corp.'s Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment from its customers after making a sale. A lower DSO indicates faster collection of receivables and better liquidity management.
Looking at the trend over the past eight quarters, we observe that Whirlpool Corp.'s DSO has shown fluctuations. In Q4 2023, the DSO decreased to 28.69 days, reflecting an improvement compared to the previous quarters. This suggests a more efficient collection process during this period.
In Q3 2023, the DSO increased to 34.83 days from the previous quarter, which might indicate delays in receiving payments from customers during that period. The DSO had also shown an increase in Q2 and Q1 2023, reaching 32.01 days and 30.25 days, respectively.
Comparing the latest DSO in Q4 2023 to the same period in the previous year (Q4 2022), we see a slight improvement from 28.78 days to 28.69 days. This indicates a relatively stable collection efficiency year-over-year.
However, it is noteworthy that the DSO had spiked significantly in Q2 and Q3 2022, reaching 46.62 days and 42.67 days, respectively, which may suggest challenges in collecting receivables during those quarters.
Overall, a decreasing trend in DSO, as observed in Q4 2023 for Whirlpool Corp., is a positive indicator of effective accounts receivable management and timely collections, which can enhance the company's cash flow and financial stability. Monitoring DSO over time can provide insights into the company's credit policies, customer payment behavior, and overall financial performance.
Peer comparison
Dec 31, 2023