Waste Management Inc (WM)
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 | 5.99 | 6.66 | 6.85 | 7.49 | 6.92 | 6.77 | 6.89 | 7.49 | 7.01 | 7.12 | 7.00 | 7.21 | 6.81 | 6.23 | 5.97 | 6.21 | 5.60 | 6.74 | 7.17 | 5.79 | |
| DSO | days | 60.89 | 54.82 | 53.32 | 48.70 | 52.76 | 53.92 | 52.94 | 48.74 | 52.06 | 51.23 | 52.14 | 50.59 | 53.59 | 58.57 | 61.19 | 58.73 | 65.18 | 54.13 | 50.91 | 63.07 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.99
= 60.89
Days of Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. For Waste Management Inc, the trend in DSO over the past few years shows some fluctuations.
From March 31, 2020, to December 31, 2021, the DSO fluctuated between 50 to 65 days. There was a significant decrease in DSO from December 31, 2021, to March 31, 2023, where it reached a low of 48.74 days. However, it started to increase again in the following quarters, with slight fluctuations until December 31, 2024.
Overall, Waste Management Inc has managed to keep its DSO within a reasonable range, indicating efficient accounts receivable management. Low DSO values suggest that the company is collecting its receivables quickly, which can improve cash flow and working capital efficiency. However, it's essential for the company to monitor DSO regularly to ensure timely collections and efficient management of its accounts receivable.
Peer comparison
Dec 31, 2024
See also:
Waste Management Inc Average Receivable Collection Period (Quarterly Data)