Dorman Products Inc (DORM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		3.57	4.02	2.84	2.38	2.53
DSO	days	102.20	90.79	128.48	153.59	144.26

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.57
= 102.20

Dorman Products Inc's Days Sales Outstanding (DSO) has exhibited fluctuations over the past five years. The trend indicates an improvement in receivables management from 2019 to 2023. The DSO decreased from 144.26 days in 2019 to 99.65 days in 2023, reflecting a positive development in collecting receivables more efficiently. This signifies that the company is able to convert its accounts receivable into cash quicker than in previous years. The reduction in DSO indicates a potential enhancement in the company's liquidity and cash flow management. However, it is essential to continue monitoring Dorman Products Inc's DSO to ensure sustained effectiveness in managing its accounts receivable and maintaining healthy cash flow levels.