Williams Companies Inc (WMB)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.59 | 4.03 | 5.37 | 7.73 | 8.23 | |
| DSO | days | 55.38 | 90.64 | 67.94 | 47.24 | 44.33 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.38
The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates a more efficient collection process and better cash flow management.
Over the past five years, Williams Cos Inc's DSO has fluctuated significantly. In 2023, the company's DSO decreased to 55.38 days from 90.64 days in 2022, which suggests an improvement in the company's receivables collection efficiency. However, it is important to note that the DSO was higher in 2022 compared to 2021 (67.94 days), indicating a temporary decrease in efficiency that year.
In 2020 and 2019, Williams Cos Inc had relatively lower DSO figures of 47.24 days and 44.33 days respectively, indicating that the company historically had a more efficient collection process during those years.
Overall, Williams Cos Inc should continue to monitor and manage its DSO to ensure efficient cash flow and timely collection of receivables, which is essential for maintaining financial health and stability.
Peer comparison
Dec 31, 2023