CTS Corporation (CTS)

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		7.01	6.34	6.00	5.99	6.45	5.95	5.53	5.60	6.24	6.44	6.12	5.51	5.24	5.44	6.99	6.38	6.01	5.87	5.62	5.76
DSO	days	52.10	57.55	60.81	60.94	56.56	61.35	65.96	65.23	58.49	56.71	59.60	66.25	69.70	67.05	52.22	57.23	60.71	62.21	64.91	63.32

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.01
= 52.10

To analyze CTS Corp.'s days of sales outstanding (DSO) over the past eight quarters, we observe a fluctuating trend. DSO represents the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates more efficient working capital management.

In Q1 2022, the company had a DSO of 65.23 days, which decreased to 56.56 days in Q4 2022. However, the DSO started to increase again in the following quarters, reaching a peak of 65.96 days in Q2 2022.

Subsequently, there was a downward trend in the DSO, with the lowest value recorded in Q4 2023 at 52.10 days. This suggests an improvement in the company's collection efficiency and could be indicative of effective credit policies or stronger customer relationships.

Overall, while there have been fluctuations in CTS Corp.'s DSO over the past eight quarters, the recent decrease in DSO to 52.10 days in Q4 2023 signifies an improvement in the company's accounts receivable management and potentially a more efficient cash conversion cycle.