Franklin Electric Co Inc (FELE)
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 | 9.18 | 8.15 | 6.91 | 7.43 | 8.79 | 7.84 | 6.76 | 7.71 | 8.43 | 7.07 | 6.35 | 7.28 | 7.77 | 7.23 | 6.78 | 7.68 | 7.56 | 6.60 | 5.87 | 7.11 | |
| DSO | days | 39.77 | 44.79 | 52.85 | 49.11 | 41.53 | 46.53 | 54.01 | 47.32 | 43.28 | 51.63 | 57.50 | 50.12 | 46.99 | 50.47 | 53.87 | 47.51 | 48.29 | 55.33 | 62.19 | 51.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.18
= 39.77
The days of sales outstanding (DSO) for Franklin Electric Co., Inc. have shown fluctuations over the past eight quarters. In Q4 2023, the DSO decreased to 39.31 days from 44.24 days in Q3 2023, indicating the company's ability to collect outstanding receivables improved during the quarter. However, compared to the same quarter in the previous year (Q4 2022), the DSO was slightly higher at 41.15 days.
Looking at a broader trend, there was a gradual decrease in DSO from Q2 2022 (53.75 days) to Q4 2023 (39.31 days), which suggests that the company has been more efficient in collecting payments from customers over this period.
It is worth noting that the DSO metric can provide insights into a company's accounts receivable management efficiency and its ability to convert sales into cash. A lower DSO typically indicates faster collection of receivables and better liquidity management, while a higher DSO may signal potential issues with credit policies or collection procedures.
Overall, Franklin Electric Co., Inc. has shown improvements in its DSO over the recent quarters, reflecting enhanced efficiency in managing its accounts receivable and cash flow. Further monitoring of this metric will help assess the company's ongoing performance in this area.
Peer comparison
Dec 31, 2023