Boston Scientific Corp (BSX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.27 | 6.19 | 6.54 | 6.24 | 5.35 | |
| DSO | days | 58.19 | 58.99 | 55.83 | 58.50 | 68.18 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.27
= 58.19
Days of Sales Outstanding (DSO) measures how long, on average, it takes for a company to collect its accounts receivable. A lower DSO indicates faster collection of receivables, which can be a sign of efficient credit and collection processes.
Boston Scientific Corp.'s DSO has been relatively stable over the past five years, ranging from 54.59 days in 2021 to 62.15 days in 2019. The slight increase in 2023 to 57.11 days from 56.70 days in 2022 suggests a slightly slower collection of receivables compared to the previous year.
It is important to note that a higher DSO can indicate potential issues with collecting payments from customers promptly, which may impact the company's cash flow and liquidity. Conversely, a lower DSO could imply more efficient management of receivables and better cash flow management.
Overall, Boston Scientific Corp.'s DSO indicates that the company has been relatively effective in managing its receivables collection process, but there may be room for improvement to expedite the cash conversion cycle further. It would be beneficial for the company to monitor this ratio closely and take corrective actions if necessary to maintain healthy cash flow.
Peer comparison
Dec 31, 2023