Zebra Technologies Corporation (ZBRA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.85 | 7.28 | 7.39 | 8.32 | 6.81 | |
| DSO | days | 46.52 | 50.16 | 49.37 | 43.88 | 53.60 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.85
= 46.52
To analyze Zebra Technologies Corp.'s days of sales outstanding (DSO) over the past five years, we can observe a fluctuating trend in this metric. DSO represents the average number of days it takes for the company to collect revenue after making a sale.
In 2019, the DSO stood at 52.49 days, indicating that on average, it took the company over 52 days to collect receivables. Subsequently, there was a significant improvement in 2020 as the DSO decreased to 43.00 days, showcasing an efficient collection process.
However, in 2021, the DSO increased to 49.30 days, suggesting a slight delay in collecting sales. This was followed by a further increase in 2022 to 50.13 days, reflecting a potential challenge in managing receivables.
Nonetheless, by the end of 2023, there was a positive change with the DSO decreasing to 46.50 days, indicating an improvement in the collection period compared to the previous year.
Overall, although there were fluctuations in Zebra Technologies Corp.'s DSO over the last five years, the recent reduction in DSO suggests the company may be enhancing its accounts receivable management practices. Further monitoring of this metric will be essential to assess the ongoing efficiency of the company's credit and collection procedures.
Peer comparison
Dec 31, 2023