Waste Management Inc (WM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.93 | 7.01 | 6.81 | 5.60 | 7.65 | |
| DSO | days | 52.70 | 52.06 | 53.57 | 65.15 | 47.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.93
= 52.70
Based on the data provided, Waste Management, Inc.'s days of sales outstanding (DSO) have shown some fluctuation over the past five years. In 2023, the DSO was 51.29 days, slightly higher compared to 2022 when it was 50.99 days. This indicates that Waste Management, Inc. took an average of 51.29 days to collect its accounts receivable in 2023.
Comparing to the previous years, the DSO was relatively stable in 2021 at 51.83 days but increased significantly in 2020 to 62.94 days before improving to 54.77 days in 2019. The decreasing trend observed after 2020 signals an improvement in the company's efficiency in collecting payments from its customers.
Overall, Waste Management, Inc.'s DSO has shown some variability over the years, but the recent trend of decreasing DSO suggests better management of accounts receivable and potentially stronger cash flow management. Further analysis would be beneficial to understand the specific drivers behind these changes and assess the company's overall financial health.
Peer comparison
Dec 31, 2023