Dril-Quip Inc (DRQ)
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 | 1.49 | 1.37 | 1.33 | 1.31 | 1.53 | 1.56 | 1.56 | 1.66 | 1.59 | 1.53 | 1.44 | 1.44 | 1.42 | 1.62 | 1.67 | 1.68 | 1.67 | 1.30 | 1.35 | 1.38 | |
| DSO | days | 244.44 | 266.11 | 274.30 | 278.83 | 237.84 | 234.21 | 233.59 | 220.14 | 230.10 | 238.46 | 252.74 | 253.59 | 256.54 | 225.74 | 218.44 | 217.30 | 218.36 | 281.85 | 269.40 | 264.17 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.49
= 244.44
The Days of Sales Outstanding (DSO) for Dril-Quip, Inc. have fluctuated over the past eight quarters. In Q4 2023, the DSO was 244.44 days, showing a slight improvement compared to the previous quarter where it was 266.11 days. However, the DSO has been relatively high over this period, indicating that the company takes a significant amount of time to collect its accounts receivable.
Looking at the trend over the past two years, the DSO has shown some variability, reaching its peak in Q1 2023 at 278.83 days. This suggests a potential difficulty in collecting payments from customers within a reasonable timeframe. In Q2 2022 and Q3 2022, there was a slight improvement in DSO, but it then increased again in the following quarters.
Overall, Dril-Quip, Inc. may benefit from implementing more efficient accounts receivable practices to shorten its DSO. A high DSO can indicate potential cash flow problems and inefficiencies in managing receivables, which could impact the company's liquidity and working capital position. It would be advisable for the company to closely monitor and potentially improve its collections process to reduce the DSO and enhance its financial performance.
Peer comparison
Dec 31, 2023