JBTMarel Corp (JBTM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.12 | 5.76 | 5.99 | 4.20 | 5.68 | |
| DSO | days | 71.28 | 63.36 | 60.96 | 86.90 | 64.30 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.12
= 71.28
The analysis of JBTMarel Corp’s days of sales outstanding (DSO) over the specified period indicates notable fluctuations in the company's receivables collection efficiency.
At the end of 2020, the DSO was approximately 64.30 days, reflecting the period it took for the company to collect receivables after sales. This level suggests a moderate receivables turnover, with the company taking a little over two months to convert sales into cash.
By the end of 2021, the DSO increased substantially to approximately 86.90 days. This marked a significant deterioration in receivables collection, extending the collection period by nearly 22.6 days. Such an increase could be indicative of loosening credit policies, collection challenges, or deteriorating customer payment behaviors during that period.
In 2022, the DSO decreased to approximately 60.96 days, representing a turnaround back to a more efficient collection period comparable to the figures seen at the close of 2020. This reduction suggests corrective actions or improved receivables management, leading to quicker cash conversion.
For 2023, the DSO marginally increased again to approximately 63.36 days, indicating a stabilization near the early 2020 levels. This slight rise may reflect minor changes in credit terms or collection processes, but overall, the receivables collection efficiency remained relatively stable compared to earlier years.
In 2024, the DSO rose again to approximately 71.28 days, showing a moderate increase from the previous year. The upward trend suggests potential signs of extended collection periods, which could be attributable to changes in customer payment practices, credit policies, or broader economic factors influencing cash flow.
Overall, JBTMarel Corp experienced significant volatility in DSO over the analyzed period, with the most notable increase occurring in 2021. While the company regained a level of efficiency in 2022 and maintained relative stability through 2023, the upward trend observed in 2024 merits ongoing monitoring. This pattern underscores the importance of effective receivables management, especially in periods of change, to sustain optimal cash flow and minimize collection risks.
Peer comparison
Dec 31, 2024