Graco Inc (GGG)
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 | 6.19 | 6.20 | 5.99 | 6.11 | 6.19 | 5.85 | 5.55 | 5.97 | 6.11 | 5.92 | 5.28 | 5.35 | 5.24 | 5.05 | 5.49 | 5.90 | 6.16 | 5.91 | 5.69 | 5.71 | |
| DSO | days | 58.92 | 58.91 | 60.97 | 59.72 | 58.92 | 62.44 | 65.82 | 61.09 | 59.71 | 61.70 | 69.10 | 68.16 | 69.67 | 72.22 | 66.47 | 61.89 | 59.28 | 61.74 | 64.16 | 63.87 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.19
= 58.92
Days of Sales Outstanding (DSO) is a crucial metric that provides insight into how efficiently a company collects its accounts receivable. A lower DSO indicates that a company is collecting its outstanding receivables more quickly, which is generally considered favorable.
Analyzing Graco Inc's DSO over the past few quarters, we observe some fluctuations. In the most recent quarter, ending December 31, 2023, the DSO was 58.92 days. This was slightly lower compared to the previous quarter, indicating an improvement in the collection of receivables.
Looking further back, there had been a gradual increase in DSO from March 31, 2022, to September 30, 2022, peaking at 72.22 days. However, since then, there has been a trend of decreasing DSO, suggesting an enhancement in the company's accounts receivable management.
It is important to note that a consistent and sustained decrease in DSO over time would be a positive signal, as it would indicate that Graco Inc is becoming more efficient in converting credit sales into cash. Conversely, a rising trend in DSO could signal issues with collecting receivables promptly, potentially impacting cash flow and liquidity.
Overall, while there have been fluctuations in Graco Inc's DSO in recent quarters, the slight decrease in the most recent period indicates a positive direction in terms of accounts receivable management. Continued monitoring of this metric will be crucial to assess the company's efficiency in collecting outstanding payments.
Peer comparison
Dec 31, 2023