BorgWarner Inc (BWA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		9.05	7.70	6.93	5.73	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
DSO	days	40.33	47.38	52.71	63.69	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.05
= 40.33

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO value indicates a quicker collection of accounts receivable and better liquidity management.

Analyzing BorgWarner Inc's DSO trend over the past few quarters, we observe fluctuations in the metric. In December 2020, DSO significantly increased to 104.75 days, indicating a delayed collection of receivables. However, the company managed to bring it down to 40.33 days by the end of December 2024, showing an improvement in collection efficiency.

Overall, BorgWarner Inc's DSO has shown variability over the period analyzed, which could be influenced by economic conditions, customer payment behaviors, or changes in sales terms. It is crucial for the company to continually monitor and manage its DSO to ensure effective cash flow management and healthy working capital levels.