Bio-Rad Laboratories Inc (BIO)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		10.58	10.99	13.74	12.02	11.72
DSO	days	34.51	33.22	26.56	30.36	31.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.58
= 34.51

The days of sales outstanding (DSO) is a measure indicating the average number of days it takes for a company to collect revenue after making a sale. A lower DSO value suggests more efficient receivables management and quicker cash conversion, while a higher DSO value could indicate potential issues with collections or credit policies. In the case of Bio-Rad Laboratories Inc., there has been some fluctuation in its DSO over the past five years:

- In 2023, the DSO increased to 66.82 days from 64.43 days in 2022, indicating a potential slowdown in the collection of sales revenue.
- The DSO was highest in 2021 at 52.90 days, showing efficient collection of sales compared to other years.
- In 2020 and 2019, the DSO was 60.14 days and 62.00 days, respectively, suggesting a relatively stable collection period.

Overall, the trend in Bio-Rad Laboratories Inc.'s DSO shows some variability, with the company experiencing both improvements and setbacks in its accounts receivable management efficiency over the past five years. Monitoring DSO trends can provide insights into the company's financial health and effectiveness in managing its working capital.