Xylem Inc (XYL)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 5.13 4.55 5.04 5.45 5.28
DSO days 71.11 80.15 72.44 66.96 69.09

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.13
= 71.11

Based on the data provided, Xylem Inc's Days Sales Outstanding (DSO) has shown fluctuations over the past five years.

- As of December 31, 2020, the DSO stood at 69.09 days, indicating that it took the company approximately 69 days to collect its accounts receivable on average.
- By December 31, 2021, the DSO decreased slightly to 66.96 days, suggesting an improvement in the collection efficiency of receivables.
- However, by December 31, 2022, the DSO increased to 72.44 days, signifying a longer time taken to collect receivables compared to the previous year.
- The trend continued into December 31, 2023, with the DSO further increasing to 80.15 days, indicating a potential challenge in managing accounts receivable and cash flow.
- By December 31, 2024, the DSO slightly improved to 71.11 days, but it still remained higher compared to 2021.

Overall, the trend in Xylem Inc's DSO shows variability, with fluctuations in the time taken to collect accounts receivable. It is important for Xylem Inc to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables.