Gates Industrial Corporation plc (GTES)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.47 | 4.33 | 4.78 | 3.86 | 4.31 | |
| DSO | days | 81.65 | 84.37 | 76.40 | 94.56 | 84.75 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.47
= 81.65
The days of sales outstanding (DSO) for Gates Industrial Corporation plc have fluctuated over the past five years. In 2023, the DSO stood at 81.65 days, showing an improvement from the previous year's figure of 84.37 days. This indicates that the company is collecting its accounts receivable more efficiently compared to the prior year.
In 2021, the DSO was at its lowest point at 76.40 days, reflecting a strong performance in receivables management. However, in 2020, the DSO increased significantly to 94.56 days, indicating a potential slowdown in collections or extending credit terms to customers during that period.
The DSO trend in 2019 was relatively stable at 84.75 days, which was in line with the 2022 figure. Overall, Gates Industrial Corporation plc should continue to monitor its DSO closely to ensure efficient management of accounts receivable and optimize cash flow within the business.
Peer comparison
Dec 31, 2023