BorgWarner Inc (BWA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.57 | 5.11 | 5.12 | 3.48 | 5.29 | |
| DSO | days | 79.93 | 71.38 | 71.29 | 104.81 | 68.96 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.57
= 79.93
The Days Sales Outstanding (DSO) for BorgWarner Inc has exhibited fluctuating trends over the past five years, indicating varying efficiencies in collecting accounts receivable. In 2023, the DSO stands at 79.93 days, showing an increase from the prior year's 76.76 days. This suggests that BorgWarner took slightly more time to convert its accounts receivable into cash in 2023 compared to 2022.
The DSO was lower in 2021 at 71.29 days, indicating improved collection efficiency compared to 2020 when the DSO was 104.81 days. The significant decrease in 2021 suggests that BorgWarner was more effective in collecting outstanding sales within a shorter period.
The lowest DSO over the five-year period was in 2019 at 68.96 days, indicating a strong ability to convert sales into cash efficiently. Overall, while there have been fluctuations in BorgWarner's DSO over the years, the company has shown the ability to manage its accounts receivable effectively, with variations likely influenced by industry conditions and company-specific factors.
Peer comparison
Dec 31, 2023