Whirlpool Corporation (WHR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 12.34 | 10.52 | 11.32 | 11.01 | 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 | |
| DSO | days | 29.57 | 34.69 | 32.24 | 33.14 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.34
= 29.57
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. The trend analysis of Whirlpool Corporation's DSO over the past few years shows fluctuation but with a general decreasing trend.
From March 31, 2020, to June 30, 2020, there was a slight increase in DSO from 34.75 days to 37.94 days. However, in the subsequent quarters, DSO increased significantly, reaching its peak at 58.73 days on December 31, 2020. This prolonged collection period may indicate potential difficulties in collecting receivables efficiently or changes in the company's credit policies.
From March 31, 2021, the DSO started to decline, suggesting improvements in the company's collection processes. The trend continued, with DSO consistently decreasing to 32.24 days by June 30, 2024. This downward trend indicates that Whirlpool Corporation has been managing its accounts receivable more effectively and efficiently.
Overall, a decreasing DSO is a positive indicator as it means the company is converting its sales into cash more quickly, improving its liquidity position. Whirlpool Corporation's decreasing DSO trend from 2021 to 2024 reflects a positive development in its receivables management and suggests improved efficiency in cash collection.
Peer comparison
Dec 31, 2024