Enovis Corp (ENOV)
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 | 5.79 | 5.94 | 5.42 | 5.73 | 8.35 | 8.59 | — | — | 5.06 | — | — | — | 5.94 | — | — | — | — | — | — | — | |
| DSO | days | 63.07 | 61.49 | 67.41 | 63.66 | 43.69 | 42.48 | — | — | 72.17 | — | — | — | 61.45 | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.79
= 63.07
To analyze the days of sales outstanding (DSO) of Enovis Corp, we consider the trend over the past eight quarters. DSO indicates the average number of days it takes for a company to collect revenue after making a sale.
Initially, in Q1 2022, the DSO was at a low of 27.34 days, signifying efficient collection of sales. This was followed by a progressive increase in DSO in subsequent quarters, peaking at 111.44 days in Q2 2023, indicating a deterioration in the collection process.
The trend shows some volatility, with fluctuations between quarters. Notably, there was a considerable decrease in DSO from Q2 2022 to Q3 2022, suggesting improvements in collections efficiency, which, however, was not sustained as DSO increased significantly in the following quarters.
Overall, the increasing trend in DSO over the past year indicates a potential concern regarding the company's ability to collect sales promptly. A high DSO can strain cash flow and working capital management. Enovis Corp may need to focus on optimizing its credit and collection processes to reduce DSO and enhance liquidity.
Peer comparison
Dec 31, 2023