BorgWarner Inc (BWA)

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		5.09	4.92	4.37	4.51	6.40	4.56	4.69	4.66	5.13	5.24	4.65	3.78	3.48	4.45	5.70	5.70	5.29	5.14	4.93	4.99
DSO	days	71.71	74.20	83.54	80.93	57.07	80.13	77.79	78.35	71.10	69.67	78.41	96.68	104.75	81.97	63.98	64.09	68.96	71.08	74.05	73.09

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.09
= 71.71

To analyze BorgWarner Inc.'s Days of Sales Outstanding (DSO) based on the provided data, we observe fluctuations in the DSO metric over the last eight quarters. DSO represents the average number of days it takes for a company to collect revenue after a sale is made.

In Q4 2023, BorgWarner Inc. experienced a DSO of 79.93 days, a slight increase from the previous quarter's 74.44 days. This uptick suggests that the company may be taking slightly longer to collect revenue from its customers compared to the previous quarter.

Looking at the trend over the last two years, there is variability in DSO figures, with values ranging from a low of 74.44 days in Q3 2023 to a high of 83.44 days in Q2 2023. This variation indicates fluctuations in the efficiency of BorgWarner Inc.'s account receivables management.

Furthermore, it is essential for the company to keep DSO at an optimal level to ensure effective cash flow management. A higher DSO could indicate potential issues such as extended credit terms to customers or difficulties in collecting payments promptly, which may impact liquidity and working capital.

Therefore, BorgWarner Inc. should continue monitoring and analyzing its DSO metric closely to identify trends, address any inefficiencies in receivables management, and strive for improvements in cash flow performance.