Watsco Inc (WSO)
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 | 9.13 | 7.65 | 7.24 | 9.00 | 9.74 | 8.38 | 7.07 | 8.44 | 8.99 | 7.68 | 6.62 | 8.69 | 9.44 | 7.72 | 7.14 | 8.43 | 8.94 | 7.32 | 7.00 | 9.02 | |
| DSO | days | 39.98 | 47.72 | 50.43 | 40.56 | 37.49 | 43.55 | 51.61 | 43.25 | 40.59 | 47.51 | 55.15 | 42.01 | 38.65 | 47.28 | 51.12 | 43.28 | 40.84 | 49.88 | 52.11 | 40.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.13
= 39.98
To analyze Watsco Inc.'s days of sales outstanding (DSO) trend, we can observe the following:
- The DSO for Q4 2023 was 39.98 days, indicating a decrease compared to the previous quarter where it was 47.72 days in Q3 2023. This suggests that the company improved its ability to collect receivables more efficiently in Q4.
- Compared to the same quarter in the previous year (Q4 2022), the DSO increased from 37.49 days to 39.98 days in Q4 2023, indicating a slightly slower collection of receivables.
- Looking at the trend over the past few quarters, the DSO fluctuated between 37.49 days (Q4 2022) and 51.61 days (Q2 2022), with some variations in the collection efficiency throughout this period.
Overall, while there have been fluctuations in DSO over the quarters, it appears that Watsco Inc. has been successful in managing its accounts receivable turnover, as evidenced by the improvement in DSO in Q4 2023 compared to the previous quarter. Efficient management of DSO is crucial for the company to maintain healthy cash flow and liquidity levels.