Williams Companies Inc (WMB)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.64 | 6.59 | 4.03 | 5.37 | 7.73 | |
| DSO | days | 64.74 | 55.38 | 90.64 | 67.94 | 47.24 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.64
= 64.74
Based on the data provided, Williams Companies Inc's Days of Sales Outstanding (DSO) has shown fluctuations over the years.
As of December 31, 2020, the DSO stood at 47.24 days, reflecting a relatively efficient collection of accounts receivable. However, there was a significant increase in DSO to 67.94 days by December 31, 2021, indicating a slower collection of receivables.
By December 31, 2022, the DSO further increased to 90.64 days, suggesting a longer time taken by the company to collect revenues from sales. This extended collection period could impact the company's cash flow and liquidity position.
On a positive note, the DSO decreased to 55.38 days as of December 31, 2023, indicating an improvement in the collection efficiency compared to the previous year.
By December 31, 2024, the DSO increased again to 64.74 days, although still below the levels seen in 2022. It would be important for Williams Companies Inc to monitor its DSO closely to ensure efficient management of accounts receivable and maintain healthy cash flow levels.
Peer comparison
Dec 31, 2024