Flowserve Corporation (FLS)
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 | 4.76 | 4.77 | 4.42 | 4.13 | 4.04 | 4.49 | 4.68 | 4.74 | 4.54 | 4.97 | 4.92 | 4.95 | 4.84 | 5.00 | 5.04 | 5.31 | 4.93 | 4.87 | 4.70 | 4.83 | |
| DSO | days | 76.60 | 76.52 | 82.52 | 88.40 | 90.46 | 81.28 | 77.91 | 76.99 | 80.38 | 73.45 | 74.15 | 73.69 | 75.38 | 73.05 | 72.44 | 68.74 | 73.98 | 74.97 | 77.67 | 75.60 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.76
= 76.60
Days of Sales Outstanding (DSO) is a measure of how long it takes a company to collect its accounts receivable, indicating the efficiency of its credit and collections policies. Looking at the trend in Flowserve Corp.'s DSO over the past eight quarters, we observe a fluctuating pattern.
In Q1 2022, the DSO was at 76.05 days, and it increased to 80.42 days in Q2 2022. However, there was a slight decrease in Q3 2022 to 76.99 days. The DSO increased again in Q4 2022 to 87.70 days, marking an upward trend continuing into Q1 2023 with 87.44 days.
The trend reversed in Q2 2023 with a decrease to 81.58 days, followed by further improvement in Q3 2023 to 75.61 days. In the latest quarter, Q4 2023, the DSO improved even more to 74.50 days.
Overall, the fluctuating trend in Flowserve Corp.'s DSO indicates some inconsistency in the company's accounts receivable collection efficiency. The recent decrease in DSO is a positive sign, suggesting that the company may be improving its collection processes. However, management should continue to monitor and manage DSO effectively to ensure a stable and optimal cash flow position.
Peer comparison
Dec 31, 2023