KBR Inc (KBR)

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 6.98 6.66 7.14 6.90 6.74 6.42 6.26 6.02 6.72 8.13 7.37 7.25 5.06 5.01 6.20 6.46 6.26 5.89 6.04 5.38
DSO days 52.31 54.84 51.13 52.89 54.16 56.84 58.30 60.62 54.28 44.90 49.55 50.34 72.10 72.84 58.83 56.48 58.29 61.92 60.42 67.86

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.98
= 52.31

Days Sales Outstanding (DSO) is a financial ratio that provides insight into how efficiently a company is managing its accounts receivable. It measures the average number of days it takes for a company to collect revenue after a sale is made.

Analyzing the DSO trend of KBR Inc from March 31, 2020, to December 31, 2024, we can see fluctuations in the number of days it takes for the company to collect its sales revenues. The DSO for KBR Inc ranged from a low of 44.90 days on September 30, 2022, to a high of 72.84 days on September 30, 2021.

Overall, there is a gradual improvement in the DSO metric from 67.86 days on March 31, 2020, to 52.31 days on December 31, 2024. This indicates that KBR Inc has been more efficient in collecting its accounts receivable over time. However, there were slight fluctuations in the DSO during the period, suggesting variations in the company's ability to manage its credit policies and collection practices.

It is important for KBR Inc to continue monitoring its DSO closely to ensure efficient management of its accounts receivable and maintain healthy cash flow levels. By identifying factors contributing to fluctuations in DSO, the company can implement strategies to optimize its receivables management and improve overall financial performance.