Kadant Inc (KAI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.38 | 6.57 | 6.65 | 6.47 | 7.10 | 6.72 | 6.79 | — | 6.88 | — | — | — | 6.67 | — | — | — | — | — | — | — | |
| DSO | days | 49.48 | 55.52 | 54.93 | 56.41 | 51.42 | 54.34 | 53.73 | — | 53.05 | — | — | — | 54.71 | — | — | — | — | — | — | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.38
= 49.48
The Days Sales Outstanding (DSO) ratio for Kadant Inc shows the average number of days it takes the company to collect revenue from its customers.
Looking at the historical trend of DSO from December 31, 2021, to December 31, 2024, we observe the following:
- The DSO decreased from 54.71 days on December 31, 2021, to 49.48 days on December 31, 2024. This downward trend signals that Kadant Inc has improved its collections efficiency, meaning it is collecting revenue from customers more quickly.
- During this period, we can see slight fluctuations in the DSO, with some quarters showing a small increase in days for collection (e.g., 56.41 days on March 31, 2024) followed by decreases in subsequent quarters.
- The DSO ratio for Kadant Inc on December 31, 2024, indicates that the company collects receivables in around 49.48 days, which suggests a relatively efficient accounts receivable management process.
Overall, the trend in DSO for Kadant Inc indicates positive improvements in collections efficiency over the examined period, which is a favorable sign for the company's liquidity and financial health.
Peer comparison
Dec 31, 2024