Generac Holdings Inc (GNRC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.01 | 7.30 | 8.61 | 6.78 | 6.54 | |
| DSO | days | 52.07 | 49.97 | 42.41 | 53.86 | 55.80 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.01
= 52.07
Analyzing Generac Holdings Inc's Days of Sales Outstanding (DSO) from 2020 to 2024 shows a fluctuating trend. In December 2020, the DSO stood at 55.80 days, indicating that on average, it took the company approximately 55.80 days to collect its accounts receivable. Over the next year, there was a slight improvement as the DSO decreased to 53.86 days by December 2021.
The most significant improvement was seen by the end of December 2022, where the DSO dropped significantly to 42.41 days, implying a more efficient collection process and potentially stricter credit terms. However, by December 2023, the DSO increased slightly to 49.97 days, suggesting a longer period for collecting accounts receivable compared to the previous year.
By December 2024, the DSO increased further to 52.07 days. While the DSO remained below the levels observed in 2020 and 2021, the upward trend in the recent years may indicate potential challenges in collecting receivables efficiently.
Overall, understanding the DSO trend can provide insight into Generac Holdings Inc's accounts receivable management and liquidity position, highlighting areas where improvements or further analysis may be necessary to optimize working capital efficiency.
Peer comparison
Dec 31, 2024