Fortune Brands Innovations Inc. (FBIN)
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 | 8.66 | 7.94 | 7.29 | — | 9.05 | 5.14 | 4.89 | 4.80 | 5.42 | 5.69 | 6.66 | 6.97 | 8.29 | 7.71 | 8.68 | 8.61 | 9.23 | 8.93 | 7.98 | 8.55 | |
| DSO | days | 42.15 | 45.94 | 50.04 | — | 40.33 | 71.05 | 74.63 | 76.00 | 67.33 | 64.18 | 54.81 | 52.40 | 44.04 | 47.33 | 42.06 | 42.39 | 39.56 | 40.88 | 45.73 | 42.69 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.66
= 42.15
The Days of Sales Outstanding (DSO) is a key financial metric that indicates the average number of days it takes a company to collect payment after making a sale. A lower DSO value is generally preferred as it signifies a faster collection of accounts receivable, which in turn improves the company's cash flow and liquidity position.
In the case of Fortune Brands Innovations Inc., we observe fluctuations in the DSO over the past few quarters. The DSO values reported range from a low of 39.56 days to a high of 76.00 days. Generally, we see that the DSO has been trending downwards over the past few quarters, with occasional fluctuations.
It is worth noting that the DSO for the quarter ending March 31, 2023, is not available. This could be due to various reasons such as a change in reporting practices, data availability issues, or other factors. It is important for investors and analysts to inquire about the missing data point and assess its impact on the overall analysis.
Overall, a consistent downward trend in DSO indicates an improvement in the company's accounts receivable management processes, which may lead to enhanced cash flows and working capital management. However, it is important to monitor this metric closely in future quarters to ensure sustained efficiency in collections and overall financial health.
Peer comparison
Dec 31, 2023