Zimmer Biomet Holdings Inc (ZBH)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.97 | 4.91 | 5.31 | 4.67 | 5.68 | |
| DSO | days | 73.41 | 74.37 | 68.75 | 78.09 | 64.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.97
= 73.41
Zimmer Biomet Holdings Inc's Days of Sales Outstanding (DSO) have shown some fluctuation over the past five years. The DSO was highest in 2020 at 75.48 days and lowest in 2019 at 62.37 days. The DSO increased to 72.66 days in 2022 but decreased to 71.20 days in 2023. This indicates that on average, it takes the company around 71.20 days to collect its accounts receivable.
A decreasing trend in DSO is generally viewed positively as it signifies faster collection of sales, improved cash flow, and potentially better efficiency in managing accounts receivable. Conversely, an increasing trend in DSO may indicate potential issues with collections, credit policies, or the quality of customers.
It is important for Zimmer Biomet Holdings Inc to monitor its DSO closely and continue to work towards optimizing its accounts receivable management to ensure efficient cash flow and financial health in the long term.
Peer comparison
Dec 31, 2023