John Bean Technologies Corporation (JBT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.95 | 7.24 | 7.81 | 7.32 | 6.73 | |
| DSO | days | 45.91 | 50.39 | 46.71 | 49.88 | 54.20 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.95
= 45.91
John Bean Technologies Corp's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment from its customers after making a sale. A lower DSO indicates that the company is able to collect revenue more quickly, which is generally favorable as it demonstrates efficient accounts receivable management.
Over the past five years, John Bean Technologies Corp has shown a decreasing trend in its DSO. From 54.20 days in 2019, the DSO has steadily decreased to 47.02 days in 2023. This trend indicates an improvement in the company's accounts receivable collection efficiency as it now takes fewer days to collect payment from customers.
The decreasing DSO could be a result of more effective credit policies, quicker invoice processing, or better collection efforts. A lower DSO also means that the company has better liquidity and cash flow management, as it can convert its accounts receivable into cash more rapidly. This can potentially reduce the company's reliance on external financing or improve its working capital management.
Overall, the improving trend in John Bean Technologies Corp's DSO over the past five years reflects positively on the company's financial health and operational efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023