Bio-Rad Laboratories Inc (BIO)

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 5.27 5.73 5.46 5.34 5.48 6.30 6.26 6.15 6.87 7.10 7.17 6.60 6.04 5.88 6.31 6.05 5.84 6.42 6.00 5.80
DSO days 69.31 63.66 66.91 68.30 66.60 57.94 58.35 59.35 53.17 51.40 50.92 55.34 60.47 62.05 57.82 60.37 62.52 56.88 60.82 62.94

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.27
= 69.31

To analyze Bio-Rad Laboratories Inc.'s days of sales outstanding (DSO) based on the provided data, we observe fluctuations in the DSO metric over the past eight quarters.

The DSO metric reflects the average number of days it takes for the company to collect payments from its customers. A higher DSO value may indicate that the company is taking longer to collect its receivables, potentially leading to cash flow issues or higher credit risk.

In the most recent quarter, Q4 2023, the DSO stood at 66.82 days, representing an increase compared to the previous quarter, Q3 2023, where it was 61.37 days. This uptick suggests a potential slowdown in the collection of receivables, which could impact liquidity and working capital management.

Comparing the current DSO to the same quarter in the previous year, Q4 2022, we note a slight increase from 64.43 days to 66.82 days. A persistent upward trend in DSO over the quarters may warrant further investigation into the company's credit policies, collection processes, or the creditworthiness of its customers.

Over the past eight quarters, the DSO values have fluctuated within a range of 56.26 days to 66.82 days. It is essential for Bio-Rad Laboratories Inc. to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables. An increasing trend in DSO should prompt management to take proactive measures to address any underlying issues and improve the company's overall financial health.