Kadant Inc (KAI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.38 | 7.10 | 6.88 | 6.67 | 6.86 | |
| DSO | days | 49.48 | 51.42 | 53.05 | 54.71 | 53.22 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.38
= 49.48
Based on the provided data, Kadant Inc's Days Sales Outstanding (DSO) has exhibited a decreasing trend over the years, moving from 53.22 days as of December 31, 2020, to 49.48 days as of December 31, 2024. This indicates that the company has been able to collect its accounts receivable more efficiently over time, which is a positive sign of effective credit management and timely collection of sales proceeds. A lower DSO can imply better liquidity and working capital management for Kadant Inc, as it indicates a shorter time frame for the company to convert its credit sales into cash. The consistent decline in DSO reflects a positive trend in the company's financial health and efficiency in managing its receivables turnover.
Peer comparison
Dec 31, 2024