Benchmark Electronics Inc (BHE)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.44 | 6.32 | 5.87 | 6.33 | 6.63 | |
| DSO | days | 56.68 | 57.78 | 62.21 | 57.65 | 55.07 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.44
= 56.68
Benchmark Electronics Inc's Days of Sales Outstanding (DSO) measure the average number of days it takes for the company to collect payment after making a sale. The trend of DSO over the past five years shows a slight increase from 55.07 days as of December 31, 2020, to 56.68 days as of December 31, 2024.
This increase suggests that Benchmark Electronics Inc is taking slightly longer to collect payments from its customers over the years. A higher DSO could indicate potential issues with accounts receivable management or difficulties in collecting payments promptly.
It is important for the company to closely monitor its DSO metric and take proactive steps to improve collections efficiency to ensure a healthy cash flow position. Benchmarking DSO against industry averages and historical performance can provide valuable insights into the company's credit policies and collection practices.
Peer comparison
Dec 31, 2024