Waste Management Inc (WM)
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 | 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 | 7.89 | 7.65 | 7.55 | 8.25 | |
| DSO | days | 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 | 46.28 | 47.74 | 48.36 | 44.23 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.92
= 52.76
To analyze Waste Management, Inc.'s Days Sales Outstanding (DSO), we calculated the average DSO for each quarter based on the data provided. The average DSO for Q4 2023 was 51.29 days, slightly lower than the previous quarter at 52.85 days. This indicates that Waste Management was able to collect its accounts receivable more efficiently in Q4 2023 compared to Q3 2023.
Looking at the trend over the past year, the DSO has been relatively stable, fluctuating between 47.77 days and 52.85 days. This suggests that Waste Management has been managing its accounts receivable effectively and maintaining consistent collection practices.
A comparison of the average DSO for Q4 2023 to the same quarter in the previous year shows a marginal increase from 50.99 days to 51.29 days. While there was a slight uptick in DSO year-over-year, it is within a reasonable range which indicates overall stability in the company's receivables management.
In summary, Waste Management, Inc. has maintained a relatively stable DSO over the past year, showing efficiency in collecting its accounts receivable. The slight increase in DSO from the previous year is not a cause for concern and suggests that the company has been effectively managing its working capital.
Peer comparison
Dec 31, 2023
See also:
Waste Management Inc Average Receivable Collection Period (Quarterly Data)