Williams Companies Inc (WMB)

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		5.64	8.05	7.47	7.82	6.59	7.79	8.45	7.56	4.03	4.25	3.86	5.34	5.37	4.76	8.93	7.96	7.73	7.65	8.60	8.67
DSO	days	64.74	45.35	48.83	46.67	55.38	46.86	43.17	48.28	90.64	85.95	94.56	68.33	67.94	76.61	40.88	45.87	47.24	47.71	42.44	42.12

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.64
= 64.74

The Days of Sales Outstanding (DSO) is a measure used to evaluate how long it takes for a company to collect revenue from its sales. For Williams Companies Inc, the DSO has shown some fluctuations over the past few years.

From March 2020 to June 2021, the DSO remained relatively stable, ranging between 40 to 47 days, indicating efficient management of accounts receivable. However, there was a significant spike in the DSO during the third quarter of 2021, reaching 76.61 days, followed by a high DSO of 94.56 days in June 2022.

Although there was a slight improvement in DSO in the subsequent quarters of 2022 and 2023, it was still above the previous levels seen before 2021. This suggests potential issues with the company's ability to collect revenue efficiently during these periods.

By the end of 2024, the DSO had decreased to 64.74 days, indicating a better performance in collecting receivables compared to the highest points in 2021 and 2022. However, it is notable that the DSO is still higher than the levels observed in the pre-2021 period, highlighting the importance of monitoring the company's accounts receivable management in the future.