Zoetis Inc (ZTS)

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		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	5.57	5.97	6.08	6.10
DSO	days	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	65.48	61.13	60.01	59.87

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.27
= 58.18

To analyze Zoetis Inc's Days of Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuation in the trend. The DSO indicates the average number of days it takes for the company to collect its accounts receivable, reflecting its efficiency in collecting payments from customers.

In Q4 2023, Zoetis Inc's DSO increased to 55.71 days from 54.81 days in Q3 2023, indicating a slightly slower collection of receivables. This trend continues from Q2 2023, where DSO peaked at 58.69 days, showing a significant increase from Q1 2023's 53.48 days.

Comparing the current DSO to the same quarter in the previous year, Q4 2023's 55.71 days is slightly higher than Q4 2022's 54.89 days. Interestingly, Q2 and Q3 of both years exhibit similar patterns, with Q2 2023 at 58.69 and Q2 2022 at 58.94 days, and Q3 2023 at 54.81 and Q3 2022 at 54.20 days.

Overall, monitoring Zoetis Inc's DSO is crucial to understanding its liquidity and working capital management. An increase in DSO may suggest potential issues in collecting receivables timely, impacting cash flow. On the other hand, a decreasing trend might indicate improved efficiency in collecting payments. Further analysis of the underlying reasons for these fluctuations is recommended to assess the company's financial health comprehensively.