Carlisle Companies Incorporated (CSL)
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 | 7.45 | 6.00 | 5.05 | 7.28 | 7.14 | 5.63 | 5.06 | 5.35 | 5.91 | 5.04 | 5.76 | 5.78 | 6.60 | 5.82 | 6.38 | 6.95 | 6.15 | 5.50 | 5.07 | 5.91 | |
| DSO | days | 48.96 | 60.82 | 72.26 | 50.16 | 51.13 | 64.81 | 72.17 | 68.20 | 61.81 | 72.42 | 63.32 | 63.11 | 55.34 | 62.70 | 57.18 | 52.54 | 59.40 | 66.31 | 71.94 | 61.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.45
= 48.96
To analyze Carlisle Companies Inc.'s Days Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuating trend. DSO measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates faster collections, while a higher DSO suggests slower collections.
In Q1 2023, Carlisle had a DSO of 42.48 days, reflecting efficient collection practices. However, in Q2 and Q3 of 2023, the DSO increased to 58.83 and 51.73 days, respectively, indicating a potential slowdown in collections. This trend may raise concerns about the company's liquidity and cash flow management.
Comparing to the same quarters in 2022, we see improvement over time. For instance, in Q4 2022, the DSO was 45.91 days, higher than Q1 2023. This suggests that Carlisle had been more efficient in collections during the recent quarters, but a slight uptick in DSO in the latest quarter should be monitored.
The increasing trend in DSO from Q1 to Q3 2023 warrants further investigation to understand the reasons behind the delayed collections. It could be due to changes in customer payment behavior, credit policies, or economic factors impacting the industry. Management should focus on optimizing working capital management to ensure healthy cash flow and operational efficiency.
Peer comparison
Dec 31, 2023