Quaker Chemical Corporation (KWR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.23 | 4.01 | 4.04 | 3.71 | 2.97 | |
| DSO | days | 86.27 | 91.10 | 90.32 | 98.31 | 122.88 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.23
= 86.27
Quaker Houghton's Days of Sales Outstanding (DSO) have shown a declining trend from 121.07 days in 2019 to 83.14 days in 2023. This indicates that the company has been able to collect receivables more efficiently over the years. A lower DSO is generally viewed positively as it signifies that customers are paying their bills faster, improving cash flow for the company.
The decreasing DSO trend could be attributed to various factors, such as effective credit policies, better customer relationships, or improvements in collection processes. It is essential for Quaker Houghton to continue monitoring and managing its DSO to ensure timely cash inflows and maintain healthy working capital levels.
Peer comparison
Dec 31, 2023