KBR Inc (KBR)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 7.00 6.74 6.72 5.06 6.26
DSO days 52.14 54.16 54.28 72.10 58.29

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.00
= 52.14

To analyze KBR Inc's Days Sales Outstanding (DSO) over the period from December 31, 2020, to December 31, 2024, we observe a fluctuating trend.

Starting at 58.29 days on December 31, 2020, the DSO increased to 72.10 days on December 31, 2021, indicating a longer collection period for accounts receivable. Subsequently, there was a significant improvement as the DSO decreased to 54.28 days on December 31, 2022, and slightly decreased further to 54.16 days on December 31, 2023.

The most recent data point as of December 31, 2024, shows a notable drop in DSO to 52.14 days, indicating a more efficient collection of accounts receivable.

Overall, the decreasing trend in DSO from 2021 to 2024 suggests that KBR Inc has been managing their accounts receivable effectively, improving their cash conversion cycle by collecting payments from customers in a timelier manner. It indicates a positive sign for liquidity and operational efficiency in managing working capital.