Belden Inc (BDC)

Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates that the company is collecting payments from its customers more quickly, which is generally favorable for cash flow and working capital management.

Analyzing Belden Inc's DSO over the past five years, we can observe a slight fluctuation in the metric. In 2023, the DSO stands at 60.13 days, a decrease from the previous year's 61.63 days. This indicates that the company has improved its collection efficiency, as it is taking slightly less time to convert sales into cash in the current year.

Comparing the DSO to 2021 and 2020, where the figures were 62.48 days and 58.16 days respectively, we see a stabilization in the collection period between 2020 and 2023. This could suggest that Belden Inc has managed to maintain a reasonable pace in its collections process, avoiding significant delays in receiving payments from customers.

Furthermore, in comparison to 2019, where the DSO was 57.31 days, there has been a slight uptick in the collection period by 2023. This indicates that Belden Inc may have experienced a marginal slowdown in the collection of revenues over the past few years, which is worth monitoring for potential impacts on cash flow and liquidity.

Overall, while Belden Inc's DSO has shown some variability over the past five years, the current trend towards a lower DSO in 2023 is a positive sign of improved collection efficiency. However, ongoing monitoring of this metric is advisable to ensure effective management of working capital and cash flow in the future.

Peer comparison

Dec 31, 2023