Brunswick Corporation (BC)
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 | 12.98 | 11.65 | 10.95 | 9.83 | 12.55 | 11.94 | 10.46 | 9.19 | 12.05 | 12.36 | 10.69 | 8.93 | 12.88 | 10.29 | 8.50 | 8.64 | 12.38 | 10.01 | 8.71 | 8.42 | |
| DSO | days | 28.12 | 31.32 | 33.34 | 37.14 | 29.09 | 30.56 | 34.90 | 39.72 | 30.30 | 29.53 | 34.13 | 40.86 | 28.34 | 35.47 | 42.94 | 42.22 | 29.48 | 36.46 | 41.91 | 43.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.98
= 28.12
Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates a more efficient accounts receivable process, while a higher DSO suggests potential difficulties in collecting revenue promptly.
Analyzing the DSO trend for Brunswick Corp. over the last eight quarters, we observe fluctuations in the collection period. In Q4 2023, the DSO decreased to 28.12 days from 31.32 days in Q3 2023. This decline is a positive sign as it shows the company improved its collection efficiency, possibly by implementing better credit policies or actively managing accounts receivables.
Comparing the most recent DSO to the same period last year, Brunswick Corp. has shown improvement as Q4 2023's DSO of 28.12 days is lower than the DSO of 29.09 days in Q4 2022. This indicates that the company has become more efficient in collecting payments from customers within the same timeframe.
However, despite the recent improvement, Brunswick Corp. should remain vigilant about any upward trend in DSO, as extended collection periods can strain cash flows and indicate potential issues with customer creditworthiness or the aging of accounts receivable. Overall, the decreasing trend in DSO over the analyzed periods reflects an effective management of the company's accounts receivable process.
Peer comparison
Dec 31, 2023