Kratos Defense & Security Solutions (KTOS)
Days of sales outstanding (DSO)
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.20 | 3.51 | 3.53 | 3.33 | 3.32 | 3.15 | 2.88 | 2.86 | 2.64 | 2.74 | 2.85 | 2.64 | 2.90 | 2.85 | 2.94 | 3.05 | 2.92 | 2.75 | 2.63 | 2.88 | |
| DSO | days | 113.90 | 104.01 | 103.35 | 109.72 | 109.85 | 115.86 | 126.85 | 127.52 | 138.28 | 133.40 | 128.17 | 138.09 | 125.94 | 128.05 | 124.35 | 119.75 | 124.94 | 132.93 | 138.99 | 126.84 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.20
= 113.90
The analysis of Kratos Defense & Security Solutions' days of sales outstanding (DSO) over the period under review indicates a pattern of fluctuations with a general tendency towards marginal improvement towards the most recent quarters.
Beginning with a DSO of approximately 126.84 days as of June 30, 2020, the metric increased significantly, reaching a peak of approximately 138.99 days by September 30, 2020, which suggests a slowdown in cash collections relative to sales during that period. Throughout the subsequent quarters, the DSO oscillated within a range approximately between 119.75 days and 138.09 days, reflecting some variability yet maintaining a comparatively elevated level of receivables outstanding.
From the end of 2021 through the first half of 2022, the DSO remained relatively stable around 125 to 138 days. Notably, by the end of 2022, the DSO sustained a level of approximately 133.40 days. During 2023, a slight downward trend was observed, with the DSO decreasing from about 138.28 days in March 2023 to approximately 127.52 days in June, and further to around 126.85 days in September 2023.
Further refinement is observed in the latest quarterly data, with the DSO declining below 115 days, reaching approximately 115.86 days at the end of December 2023, and continuing a downward trajectory to approximately 109.85 days by March 2024 and approximately 109.72 days by June 2024. The trend persisted through September 2024, where the DSO was approximately 103.35 days, indicating an improvement in collection efficiency or tighter credit management.
In the most recent data, extending into the first quarter of 2025, the DSO slightly increased but remained relatively low at around 113.90 days as of March 2025. Overall, the data demonstrates a significant reduction in the company's receivables turnover period over the last year, reflecting improved cash collection processes or potentially changes in customer payment terms.
This pattern of decreasing DSO suggests that Kratos Defense & Security Solutions has successfully transitioned to shorter receivables collection cycles in recent periods, enhancing its liquidity position and reducing the time lag between sales recognition and cash receipt.
Peer comparison
Mar 31, 2025