CTS Corporation (CTS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.01 | 6.45 | 6.24 | 5.24 | 6.01 | |
| DSO | days | 52.10 | 56.56 | 58.49 | 69.70 | 60.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.01
= 52.10
The Days of Sales Outstanding (DSO) for CTS Corp. have shown a decreasing trend over the past five years, indicating an improvement in the company's collection efficiency. In 2023, the DSO was 52.10 days, down from 56.56 days in 2022 and 58.49 days in 2021. This implies that CTS Corp. is collecting its accounts receivable more quickly, which is a positive sign as it suggests effective credit management and faster conversion of sales into cash. The DSO reaching 69.70 days in 2020 was a notable outlier, but the subsequent decline demonstrates a proactive approach in managing receivables. Overall, the decreasing trend in DSO reflects an efficient accounts receivable management strategy by CTS Corp., enhancing its liquidity position and financial performance.
Peer comparison
Dec 31, 2023