Zoetis Inc (ZTS)

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		6.64	6.49	6.45	6.75	6.27	6.66	6.22	6.82	6.28	6.73	6.19	6.46	6.59	6.61	6.34	6.23	6.29	6.46	6.44	6.57
DSO	days	55.01	56.27	56.62	54.04	58.18	54.81	58.69	53.48	58.09	54.20	58.94	56.52	55.39	55.21	57.62	58.56	58.02	56.46	56.65	55.56

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.64
= 55.01

Days Sales Outstanding (DSO) is a financial metric that indicates the average number of days a company takes to collect revenue after making a sale. Lower DSO values are typically favorable as they suggest faster cash conversion and efficient accounts receivable management.

Analyzing the DSO trend for Zoetis Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the collection period. The DSO figures ranged from a low of 53.48 days on March 31, 2023, to a high of 58.94 days on June 30, 2022. Overall, the DSO displayed some level of volatility but generally remained within the range of 53.48 days to 58.94 days over the period.

It is worth noting that the DSO decreased to 54.20 days on September 30, 2022, indicating the company improved its collections process. However, the metric increased to 58.69 days on June 30, 2023, before decreasing again on September 30, 2023, and remaining relatively stable towards the end of the period.

Zoetis Inc should continue to monitor its DSO closely to ensure efficient management of accounts receivable and timely collections, which can positively impact cash flows and overall financial performance.