Knowles Cor (KN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.27 | 3.38 | 5.68 | 5.92 | 5.82 | |
| DSO | days | 69.24 | 108.11 | 64.29 | 61.64 | 62.75 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.27
= 69.24
Based on the data provided, Knowles Cor's Days of Sales Outstanding (DSO) has shown some fluctuations over the years. In December 31, 2020, the DSO was at 62.75 days, which decreased slightly to 61.64 days by December 31, 2021. However, there was an increase to 64.29 days by December 31, 2022.
The most significant change occurred by December 31, 2023, with the DSO spiking to 108.11 days, indicating that it took the company longer to collect revenue from its sales during that period. This substantial increase may raise concerns about the company's credit policies, collection efficiency, or possibly issues with customer payments.
By December 31, 2024, the DSO decreased to 69.24 days, showing some improvement from the previous year. However, it is still higher compared to the earlier years. The company should closely monitor and manage its accounts receivable collection processes to ensure timely payments and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2024