KBR Inc (KBR)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 5.78 | 5.32 | 5.19 | 5.35 | |
| DSO | days | 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 | 63.11 | 68.67 | 70.35 | 68.17 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.74
= 54.16
Days Sales Outstanding (DSO) is a key metric that reflects the average number of days it takes a company to collect outstanding sales revenue after a sale has been made. A lower DSO indicates that the company is able to collect payments more quickly, which is generally favorable.
Analyzing the DSO trend of KBR Inc over the past few quarters, we observe fluctuations in the metric. From December 2019 to December 2020, the DSO remained relatively stable, followed by a significant decrease in the first three quarters of 2021. However, starting from the last quarter of 2021, there was a consistent increase in DSO, reaching a peak of 72.84 days in September 2021. Subsequently, there was some fluctuation in the metric, with the latest reported DSO at 54.16 days in December 2023.
The decreasing trend in DSO from Q4 2021 to Q3 2021 suggests that KBR Inc improved its efficiency in collecting accounts receivable during that period, indicating effective credit and collection management practices. However, the recent increase in DSO from Q3 2022 to Q3 2023 may raise concerns about potential challenges in collecting receivables promptly.
It is essential for KBR Inc to closely monitor its DSO and implement strategies to maintain a balance between efficient collections and maintaining good customer relationships. High DSO levels can tie up cash flow and indicate potential liquidity issues, while very low DSO levels may signify overly aggressive collection policies that could strain customer relationships.
Peer comparison
Dec 31, 2023