Belden Inc (BDC)
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 | 6.07 | 5.45 | 5.22 | 6.31 | 5.92 | 5.86 | 5.86 | 6.40 | 6.00 | 4.93 | 5.05 | 5.25 | 5.90 | 5.78 | 6.52 | 6.82 | 6.37 | 4.64 | 4.77 | 5.36 | |
| DSO | days | 60.13 | 67.03 | 69.86 | 57.82 | 61.63 | 62.28 | 62.29 | 57.06 | 60.82 | 74.10 | 72.34 | 69.54 | 61.83 | 63.17 | 55.98 | 53.51 | 57.31 | 78.70 | 76.48 | 68.15 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.07
= 60.13
Days Sales Outstanding (DSO) is a liquidity ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates faster collection of accounts receivable and better liquidity management.
Analyzing the DSO trend of Belden Inc over the past eight quarters, we observe the following:
- In Q4 2023, the DSO was 60.13 days, showing a slight improvement from the previous quarter's 67.03 days.
- The DSO fluctuated in the range of 55.24 to 69.86 days over the last eight quarters, indicating some variability in the company's ability to collect receivables.
- The lowest DSO was recorded in Q1 2022 at 55.24 days, suggesting efficient receivables management during that period.
- The highest DSO was seen in Q2 2023 at 69.86 days, reflecting a longer collection period and potential challenges in managing accounts receivable.
- Overall, Belden Inc's DSO has shown some volatility but has generally remained within a manageable range, with efforts needed to stabilize and potentially reduce the collection period for improved liquidity management.
It may be beneficial for the company to focus on optimizing its credit policies, enhancing collections processes, and efficiently managing accounts receivable to lower DSO and enhance cash flow efficiency.
Peer comparison
Dec 31, 2023