Exxon Mobil Corp (XOM)

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		9.06	8.51	10.50	10.56	9.91	9.51	7.59	7.52	8.82	8.38	7.70	7.45	8.82	10.12	11.61	12.34	9.82	10.66	10.36	10.46
DSO	days	40.27	42.91	34.77	34.57	36.84	38.39	48.07	48.52	41.38	43.58	47.43	48.98	41.39	36.07	31.44	29.59	37.15	34.26	35.22	34.89

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.06
= 40.27

Days of Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO is generally preferred as it signifies a shorter time period for the company to receive payment for its products or services.

Looking at Exxon Mobil Corp.'s DSO data over the past eight quarters, we observe fluctuations in the trend. In Q4 2023, the DSO decreased to 41.03 days from 43.64 days in Q3 2023. This reduction indicates an improvement in the company's efficiency in collecting revenue from customers. In comparison to the same period last year (Q4 2022), the DSO decreased by about 3.86 days, which suggests a positive trend in managing accounts receivable.

Analyzing further back, we can see that the DSO was relatively lower in Q1 and Q2 of 2023 compared to the previous quarters. This could be attributed to better collection practices or changes in customer payment behavior during those periods. However, the DSO increased in Q3 and Q4 of 2022, reaching a peak of 49.75 days in Q1 2022.

The fluctuation in DSO levels may be influenced by various factors such as industry seasonality, credit policies, and economic conditions. It is essential for Exxon Mobil Corp. to continue monitoring and managing its DSO to ensure efficient cash flow and timely collection of receivables.

Overall, the recent decrease in DSO for Exxon Mobil Corp. is a positive sign of improved collection efficiency, but the company should strive for consistent management of accounts receivable to maintain a healthy financial position.