Zoetis Inc (ZTS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.27 | 6.28 | 6.59 | 6.29 | 5.57 | |
| DSO | days | 58.18 | 58.09 | 55.39 | 58.02 | 65.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.27
= 58.18
The days of sales outstanding (DSO) for Zoetis Inc have shown a slight increase over the past five years, fluctuating within a range of 53.18 days to 63.32 days. The DSO indicates the average number of days it takes for the company to collect its accounts receivable.
In 2023, the DSO stood at 55.71 days, slightly higher than the previous year's figure of 54.89 days. This suggests that Zoetis Inc took slightly longer to collect its accounts receivable in 2023 compared to 2022.
Looking further back, we observe a general downward trend in DSO from 2019 to 2021, indicating improved efficiency in collecting receivables during those years. However, the DSO increased in 2022 and 2023, albeit marginally.
Overall, Zoetis Inc's DSO trend indicates a relatively stable collection period for accounts receivable, with occasional fluctuations. Investors and analysts may want to monitor future DSO figures closely to assess the company's effectiveness in managing its receivables and maintaining healthy cash flows.
Peer comparison
Dec 31, 2023