Generac Holdings Inc (GNRC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.01 | 6.25 | 6.55 | 7.63 | 7.35 | 6.68 | 7.33 | 8.70 | 8.66 | 8.37 | 6.36 | 6.62 | 6.79 | 6.67 | 6.58 | 6.51 | 6.56 | 5.75 | 6.77 | 6.99 | |
| DSO | days | 52.07 | 58.35 | 55.73 | 47.83 | 49.65 | 54.65 | 49.78 | 41.97 | 42.14 | 43.58 | 57.36 | 55.11 | 53.72 | 54.71 | 55.45 | 56.03 | 55.62 | 63.48 | 53.89 | 52.25 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.01
= 52.07
The Days of Sales Outstanding (DSO) ratio measures the number of days it takes a company to collect its accounts receivable. A lower DSO indicates that a company is collecting payments from customers more quickly, which is generally considered favorable as it improves cash flow.
Analyzing Generac Holdings Inc's DSO over the past few years, we can observe fluctuations in the ratio:
- In March 2020, the DSO stood at 52.25 days, indicating a relatively efficient collections process.
- The DSO increased to 63.48 days by September 2020, suggesting a slower collection of accounts receivable during that period.
- Over the subsequent quarters, the DSO fluctuated within a range, with values ranging from 41.97 to 58.35 days.
- The trend appears to be somewhat improving towards the end of the period, as the DSO decreased to 52.07 days by December 2024, compared to higher levels observed in mid-2020.
Overall, it is important for Generac Holdings Inc to maintain a balance between collecting payments promptly to maintain healthy cash flow and allowing customers reasonable credit terms to encourage sales. Monitoring and managing the DSO closely can help the company optimize its cash conversion cycle and overall financial performance.
Peer comparison
Dec 31, 2024
See also:
Generac Holdings Inc Average Receivable Collection Period (Quarterly Data)