KBR Inc (KBR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.74 | 6.72 | 5.06 | 6.26 | 5.78 | |
| DSO | days | 54.16 | 54.28 | 72.10 | 58.29 | 63.11 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.74
= 54.16
Days Sales Outstanding (DSO) measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is collecting receivables more quickly, which is generally positive.
For KBR Inc, the DSO has fluctuated over the past five years. In 2023, the DSO was 54.16 days, slightly lower than the previous year's 54.28 days. This suggests a relatively stable collection period for the company's sales.
Comparing to 2021 when the DSO was 72.10 days, the improvement in 2023 indicates that KBR has been able to streamline its receivables collection process. However, the DSO in 2023 is still higher than the levels seen in 2020 and 2019, indicating that there may be room for further efficiency in collecting payments from customers.
Overall, the trend in DSO for KBR Inc shows some variability but has generally improved compared to the higher levels seen in 2021. Monitoring DSO over time can provide insights into the company's effectiveness in managing its accounts receivable and cash flow.
Peer comparison
Dec 31, 2023