Gates Industrial Corporation plc (GTES)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 4.54 4.47 4.33 4.78 3.86
DSO days 80.46 81.65 84.37 76.40 94.56

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.54
= 80.46

Based on the provided data, Gates Industrial Corporation plc's days of sales outstanding (DSO) has shown fluctuating trends over the past five years.

At the end of December 2020, the DSO was recorded at 94.56 days, indicating that on average, it took the company approximately 94.56 days to collect its accounts receivable.

By the end of December 2021, there was a significant improvement in the DSO metric, decreasing to 76.40 days. This suggests that the company was able to collect its outstanding sales in a shorter time frame compared to the previous year.

In December 2022, the DSO slightly increased to 84.37 days, which indicates a slight delay in collecting accounts receivable compared to the prior year.

Moving on to December 2023, the DSO decreased to 81.65 days, showing a positive trend in accounts receivable collection efficiency compared to the preceding year.

As of December 2024, the DSO further improved to 80.46 days, signaling continued efforts in enhancing accounts receivable management.

Overall, the fluctuations in Gates Industrial Corporation plc's DSO over the five-year period may indicate varying efficiency levels in collecting outstanding sales, with the company showing improvement in recent years. It is important for the company to continue monitoring and managing its DSO to ensure optimal cash flow and liquidity.