Knowles Cor (KN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.23 | 5.68 | 5.92 | 5.82 | 5.36 | |
| DSO | days | 69.79 | 64.29 | 61.64 | 62.75 | 68.15 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.23
= 69.79
Days Sales Outstanding (DSO) is a key metric that indicates how efficiently a company collects its accounts receivable. A lower DSO implies faster collection of receivables, which is generally favorable as it indicates better cash flow management.
In the case of Knowles Corp, the trend of DSO over the past five years shows some fluctuations. From 2019 to 2021, there was a decreasing trend in DSO, indicating improved efficiency in collecting receivables. However, in 2022, there was a slight increase in DSO to 64.29 days.
By the end of 2023, the DSO increased further to 69.79 days, which may suggest that Knowles Corp took longer to collect its accounts receivable compared to the previous year. This increase in DSO could be a red flag, signaling potential issues with the company's accounts receivable management or customer payment behavior.
Further analysis and investigation into the reasons behind this increase in DSO for Knowles Corp are recommended to ensure sustainable and efficient cash flow management in the future.
Peer comparison
Dec 31, 2023