Curtiss-Wright Corporation (CW)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.74 | 3.82 | 3.47 | 3.81 | 4.06 | |
| DSO | days | 97.65 | 95.62 | 105.18 | 95.85 | 89.86 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.74
= 97.65
The Days Sales Outstanding (DSO) ratio is used to evaluate how efficiently a company is managing its accounts receivable. A higher DSO indicates that it takes the company more time to collect its outstanding receivables, which may lead to cash flow issues.
For Curtiss-Wright Corporation, the DSO trend over the five-year period from December 31, 2020, to December 31, 2024, shows a fluctuating pattern. The DSO was 89.86 days in 2020, increased to 95.85 days in 2021, further rose to 105.18 days in 2022, then decreased to 95.62 days in 2023, and finally increased slightly to 97.65 days in 2024.
The increase in DSO from 2020 to 2022 indicates that Curtiss-Wright may be facing challenges in collecting its receivables promptly, which could potentially strain its working capital. The subsequent decrease in 2023 followed by a slight increase in 2024 suggests some improvement in receivables management but still leaves room for enhancement.
Overall, Curtiss-Wright Corporation should continue monitoring and managing its DSO ratio effectively to ensure timely collection of receivables and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2024