Zimmer Biomet Holdings Inc (ZBH)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.02	4.97	4.91	5.31	4.67
DSO	days	72.70	73.41	74.37	68.75	78.09

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.02
= 72.70

Zimmer Biomet Holdings Inc's Days Sales Outstanding (DSO) is a metric used to evaluate the average number of days it takes for the company to collect revenues from its credit sales. The trend of Zimmer Biomet's DSO over the years shows a slight decrease from 78.09 days as of December 31, 2020, to 68.75 days as of December 31, 2021, indicating an improvement in their accounts receivable turnover.

However, the DSO increased to 74.37 days as of December 31, 2022, and then decreased slightly to 73.41 days as of December 31, 2023, and further to 72.70 days as of December 31, 2024. These fluctuations suggest that Zimmer Biomet may have experienced some changes in their credit policies or collection procedures during these years.

Overall, Zimmer Biomet's DSO trend indicates that the company has been relatively efficient in collecting its credit sales over the years, with a general downward trend in recent years, demonstrating an improvement in their accounts receivable management and liquidity position.