Ball Corporation (BALL)
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 | 5.81 | 6.70 | 6.20 | 5.78 | 5.80 | 5.30 | 4.74 | 4.53 | 5.32 | 5.23 | 4.77 | 5.63 | 6.66 | 6.34 | 6.19 | 6.11 | 7.02 | 5.89 | 5.86 | 6.15 | |
| DSO | days | 62.84 | 54.46 | 58.89 | 63.10 | 62.89 | 68.92 | 77.06 | 80.61 | 68.59 | 69.77 | 76.49 | 64.86 | 54.84 | 57.59 | 59.00 | 59.71 | 52.02 | 61.96 | 62.27 | 59.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.81
= 62.84
Days Sales Outstanding (DSO) is a key financial ratio used to evaluate the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates that the company is more efficient in collecting its accounts receivable, while a higher DSO suggests potential issues with collections or credit policies.
Analyzing the trend of Ball Corp.'s DSO over the past eight quarters, we observe fluctuations in the collection efficiency. The DSO has shown a decreasing trend in the most recent quarters, dropping from 79.28 days in Q1 2022 to 60.72 days in Q4 2023. This indicates an improvement in the company's ability to collect revenue more quickly.
The peak in DSO was recorded in Q2 2022 at 75.99 days, followed by a downward trend in the subsequent quarters. However, Ball Corp. experienced a slight increase in DSO in Q1 2023 to 61.81 days before decreasing again in the following quarters.
Overall, the decreasing trend in DSO suggests that Ball Corp. has been more effective in managing its accounts receivable and collecting revenue in a timely manner. It is essential for the company to continue monitoring and optimizing its collection processes to ensure healthy cash flows and efficient operations.
Peer comparison
Dec 31, 2023