Zimmer Biomet Holdings Inc (ZBH)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		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	5.72	6.74	6.16	6.24
DSO	days	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	63.78	54.19	59.29	58.49

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.97
= 73.41

To analyze Zimmer Biomet Holdings Inc's Days of Sales Outstanding (DSO) performance based on the provided data, we calculate the average DSO for each quarter:

- Q4 2023: 71.20 days
- Q3 2023: 67.23 days
- Q2 2023: 69.36 days
- Q1 2023: 70.91 days
- Q4 2022: 72.66 days
- Q3 2022: 65.24 days
- Q2 2022: 63.18 days
- Q1 2022: 59.83 days

Average DSO for 2023: (71.20 + 67.23 + 69.36 + 70.91) / 4 = 69.18 days
Average DSO for 2022: (72.66 + 65.24 + 63.18 + 59.83) / 4 = 65.72 days

Observations:
1. The average DSO in 2023 is higher at 69.18 days compared to 65.72 days in 2022, indicating that the company is taking longer to collect its accounts receivable, which may signal potential challenges in managing its working capital effectively.

2. There is fluctuation in DSO over the quarters in both 2023 and 2022, with some quarters showing higher DSO figures than others. This variability may suggest inconsistencies in the company's credit and collection policies or changes in customer payment behaviors.

3. The increasing trend in DSO from Q2 2022 to Q4 2023 warrants attention as it may indicate a potential deterioration in the company's liquidity position or a slowdown in cash inflows from sales.

In conclusion, Zimmer Biomet Holdings Inc's DSO analysis highlights the importance of closely monitoring accounts receivable management practices to ensure timely collection of outstanding payments and maintain healthy cash flow levels.