Franklin Electric Co Inc (FELE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.18 | 8.79 | 8.43 | 7.77 | 7.53 | |
| DSO | days | 39.77 | 41.53 | 43.28 | 47.00 | 48.49 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.18
= 39.77
The Days Sales Outstanding (DSO) for Franklin Electric Co., Inc. has shown a decreasing trend over the past five years, which is a positive indicator of the company's efficiency in collecting accounts receivable. In 2023, the DSO was 39.31 days, compared to 41.15 days in 2022, 43.09 days in 2021, 46.77 days in 2020, and 48.13 days in 2019.
A lower DSO indicates that the company is able to convert its accounts receivable into cash more quickly, which can improve cash flow and overall liquidity. This trend suggests that Franklin Electric Co., Inc. has been successful in managing its accounts receivable effectively, potentially through better credit control and collection practices.
Peer comparison
Dec 31, 2023