Gates Industrial Corporation plc (GTES)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.04 | 4.20 | 4.47 | 4.13 | 3.92 | — | 4.33 | — | — | — | 4.78 | — | — | — | — | — | — | — | — | — | |
| DSO | days | 90.34 | 86.93 | 81.65 | 88.40 | 93.04 | — | 84.37 | — | — | — | 76.40 | — | — | — | — | — | — | — | — | — |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.04
= 90.34
The days of sales outstanding (DSO) for Gates Industrial Corporation plc have shown fluctuations over the recent periods. As of June 30, 2024, the DSO stood at 90.34 days, indicating the average number of days it takes for the company to collect revenue from sales. Comparing this figure to historical data, we observe a gradual increase from the DSO of 81.65 days on December 31, 2023.
The trend suggests a potential deterioration in the efficiency of accounts receivable management, as the company is taking longer to convert its sales into cash. Furthermore, the DSO metric exceeds industry benchmarks, indicating a potential liquidity risk if this trend persists.
It is noteworthy that there are data gaps in some periods, limiting a comprehensive trend analysis. Going forward, a closer examination of the company's credit policies, collections procedures, and overall working capital management may be warranted to address the extended DSO and its implications on the company's cash flow and financial health.
Peer comparison
Jun 30, 2024