XPO Logistics Inc (XPO)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.70 | 7.96 | 8.09 | 3.42 | 2.14 | |
| DSO | days | 47.42 | 45.86 | 45.12 | 106.68 | 170.78 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.70
= 47.42
The Days Sales Outstanding (DSO) ratio for XPO Logistics Inc has shown a significant improvement over the years, reflecting the company's efficiency in collecting its accounts receivable.
As of December 31, 2020, the DSO stood at a relatively high 170.78 days, indicating that it took the company over 5 and a half months to collect its outstanding sales. However, by December 31, 2021, the DSO decreased to 106.68 days, showcasing a notable improvement in the collection period.
Subsequently, XPO Logistics continued to enhance its collection efficiency as seen in the DSO figures for December 31, 2022, 2023, and 2024, which were 45.12 days, 45.86 days, and 47.42 days, respectively. These decreasing DSO values suggest that the company has become more effective in converting its sales into cash faster over time.
Overall, the trend in XPO Logistics Inc's DSO ratio indicates a positive trajectory in managing its receivables, which can contribute to better cash flow management and overall financial health.
Peer comparison
Dec 31, 2024