Waste Management Inc (WM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.01 | 6.93 | 7.01 | 6.81 | 5.60 | |
| DSO | days | 60.73 | 52.70 | 52.06 | 53.57 | 65.15 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.01
= 60.73
Waste Management Inc has exhibited a decreasing trend in its Days Sales Outstanding (DSO) metric over the past five years, indicating an improvement in the company's efficiency in collecting receivables.
In December 31, 2020, the DSO stood at 65.15 days, which decreased to 53.57 days by December 31, 2021, showcasing a significant reduction. This downward trend continued over the next few years, with the DSO further declining to 52.06 days by December 31, 2022, and maintained a similar level at 52.70 days by December 31, 2023.
However, there was a slight uptick in the DSO to 60.73 days by December 31, 2024, suggesting a potential lengthening in the collection period. Overall, Waste Management Inc's decreasing DSO indicates a more efficient management of accounts receivable, translating to a faster turnover of sales into cash inflows over the years analyzed.
Peer comparison
Dec 31, 2024