Williams Companies Inc (WMB)
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 | 6.59 | 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 | 8.23 | 9.48 | 9.79 | 9.31 | |
| DSO | days | 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 | 44.33 | 38.49 | 37.30 | 39.19 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.38
To analyze Williams Cos Inc's Days of Sales Outstanding (DSO) over the past eight quarters, we observe a significant downward trend from Q1 2022 to Q3 2023. DSO has decreased from 68.33 days in Q1 2022 to 46.86 days in Q3 2023. This indicates that the company has been collecting its accounts receivable more efficiently, requiring fewer days to convert sales into cash.
The highest DSO was recorded in Q4 2022 at 90.64 days, suggesting a slower collection of receivables during that quarter. However, the company has been able to improve its collection efficiency in subsequent quarters.
Overall, the decreasing trend in DSO is a positive indicator of the company's liquidity and cash flow management. It signifies that Williams Cos Inc has been more effective in collecting payments from customers, which could lead to improved working capital management and potentially better financial performance.
Peer comparison
Dec 31, 2023