Zimmer Biomet Holdings Inc (ZBH)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		5.02	4.98	5.14	4.99	4.97	5.26	5.12	5.02	4.91	5.34	5.51	5.81	5.30	5.54	5.44	5.02	4.71	5.13	6.43	7.31
DSO	days	72.70	73.34	71.00	73.18	73.41	69.37	71.36	72.69	74.37	68.35	66.27	62.79	68.81	65.85	67.13	72.77	77.51	71.11	56.80	49.93

December 31, 2024 calculation

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

The Days of Sales Outstanding (DSO) metric for Zimmer Biomet Holdings Inc has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the DSO ranged from a low of 49.93 days to a high of 77.51 days.

The trend in DSO indicates how long it takes for the company to collect revenue from its sales. A lower DSO is generally preferred as it signifies faster collection of accounts receivable, potentially indicating efficient credit management and a healthy cash flow. Conversely, a higher DSO may indicate issues with collecting payments from customers and can lead to liquidity challenges.

Zimmer Biomet Holdings Inc's DSO fluctuated within a range, with peaks around the end of some years and lower points during other quarters. It is essential to monitor DSO trends over time to understand changes in the company's credit policies, customer payment behavior, and overall financial health.