BorgWarner Inc (BWA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.95	4.57	5.11	5.12	3.48
DSO	days	73.67	79.93	71.38	71.29	104.81

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.95
= 73.67

Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is collecting its accounts receivable. Lower DSO values indicate that the company is collecting payments from customers more quickly, which is generally favorable.

Analyzing the DSO trend for BorgWarner Inc over the past five years shows a notable improvement in collection efficiency. In December 2020, the DSO stood at 104.81 days, indicating that it took the company over three months to collect outstanding sales. However, there has been a steady decline in DSO since then.

By December 2021, the DSO had decreased significantly to 71.29 days, showing a notable improvement in accounts receivable collection efficiency. This positive trend continued in 2022 and 2023, with DSO figures of 71.38 days and 79.93 days respectively.

In December 2024, BorgWarner Inc achieved a DSO of 73.67 days, which, although slightly higher than the previous year, still reflects a more efficient collection process compared to the baseline in 2020.

Overall, the decreasing trend in DSO for BorgWarner Inc indicates that the company has been successful in managing its accounts receivable effectively, improving its cash flow and financial health over the years.