CONMED Corporation (CNMD)
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 | 5.14 | 5.08 | 4.97 | 5.15 | 5.46 | 5.42 | 5.16 | 5.57 | 5.50 | 5.98 | 5.79 | 5.37 | 4.87 | 5.25 | 6.07 | 5.71 | 5.05 | 5.38 | 5.03 | 5.09 | |
| DSO | days | 71.04 | 71.90 | 73.46 | 70.83 | 66.80 | 67.39 | 70.78 | 65.56 | 66.41 | 61.02 | 63.03 | 67.92 | 74.97 | 69.53 | 60.15 | 63.92 | 72.27 | 67.81 | 72.50 | 71.75 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.14
= 71.04
The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that a company is collecting payments more quickly, which is generally seen as positive.
Analyzing Conmed Corp.'s DSO over the past eight quarters, we observe fluctuations in the metric. In Q4 2023, the DSO was 71.04 days, slightly lower than the previous quarter's 71.90 days, but higher compared to the same period in the prior year. This suggests that Conmed Corp. took, on average, 71.04 days to collect payments from customers in Q4 2023.
Looking at the trend over the four quarters of 2023, we notice some variability but no clear pattern of improvement or deterioration. It is essential to keep monitoring this ratio to understand whether the company is becoming more efficient in collecting payments or facing challenges in its receivables management.
Comparing to Q1 2023 and prior quarters, the DSO seems to have stabilized around the high 60s to low 70s range. Conmed Corp. may consider implementing strategies to improve its collections process to reduce the number of days it takes to convert sales into cash, thereby enhancing its working capital management and overall financial performance.
Peer comparison
Dec 31, 2023