Fortune Brands Innovations Inc. (FBIN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.96 | 8.66 | 9.05 | 5.42 | 4.93 | |
| DSO | days | 40.74 | 42.15 | 40.33 | 67.33 | 74.07 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.96
= 40.74
Days Sales Outstanding (DSO) is an essential financial metric that helps evaluate how efficiently a company manages its accounts receivable. In the case of Fortune Brands Innovations Inc., the DSO has shown a decreasing trend over the past five years.
As of December 31, 2020, the company had a DSO of 74.07 days, indicating that it took, on average, around 74 days to collect outstanding sales. By December 31, 2021, the DSO decreased to 67.33 days, suggesting an improvement in collecting payments from customers.
The trend continued positively into the subsequent years, with DSO further dropping to 40.33 days by December 31, 2022, 42.15 days by December 31, 2023, and 40.74 days by December 31, 2024.
The decreasing trend in DSO indicates that Fortune Brands Innovations Inc. has been successful in efficiently managing its accounts receivable and collecting payments from customers in a timelier manner. However, it's crucial to continue monitoring DSO to ensure that the trend remains favorable and the company maintains effective credit and collection policies.
Peer comparison
Dec 31, 2024