BWX Technologies Inc (BWXT)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 17.73 | 28.32 | 36.02 | 29.63 | 13.65 | |
| DSO | days | 20.58 | 12.89 | 10.13 | 12.32 | 26.74 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.73
= 20.58
The days of sales outstanding (DSO) for BWX Technologies Inc have exhibited a decreasing trend over the years, indicating an improvement in the company's efficiency in collecting accounts receivable.
As of December 31, 2020, the DSO stood at 26.74 days, reflecting the average number of days it took for the company to convert its accounts receivable into cash. Subsequently, there was a notable reduction in DSO to 12.32 days by December 31, 2021, suggesting a more streamlined collection process.
This trend continued into the following years, with the DSO further decreasing to 10.13 days by December 31, 2022, before experiencing a slight uptick to 12.89 days by December 31, 2023. Nonetheless, the DSO remained relatively low compared to the initial period.
By December 31, 2024, the DSO increased to 20.58 days, indicating a longer period for accounts receivable collection compared to the previous year. It would be prudent for the company to assess the reasons for this increase and implement strategies to maintain efficient collections.
Overall, the decreasing trend in DSO over the years reflects positively on BWX Technologies Inc's ability to manage its receivables effectively and convert them into cash promptly, contributing to potential improvements in liquidity and operating performance.
Peer comparison
Dec 31, 2024