Dril-Quip Inc (DRQ)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 1.49 | 1.53 | 1.59 | 1.42 | 1.67 | |
| DSO | days | 244.44 | 237.94 | 230.10 | 256.54 | 218.36 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.49
= 244.44
The days of sales outstanding (DSO) for Dril-Quip, Inc. have shown some fluctuations over the past five years. In 2023, the DSO stands at 244.44 days, which is higher compared to the previous year (237.84 days in 2022) but remains within a relatively stable range observed over the period. The company took an average of 230.10 days to collect its sales in 2021, indicating a slight increase from 256.54 days in 2020. In 2019, the DSO was at 218.36 days.
Overall, the trend suggests that the company's collection period has been inconsistent, with fluctuations in DSO levels over the years. A higher DSO may indicate potential issues with accounts receivable management or slower collection processes, which could impact the company's cash flow and liquidity position. It is essential for Dril-Quip, Inc. to closely monitor and improve its DSO to ensure efficient management of its receivables and optimize its working capital.
Peer comparison
Dec 31, 2023