Lincoln Electric Holdings Inc (LECO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.75 | 6.95 | 7.54 | 7.11 | 8.02 | |
| DSO | days | 47.11 | 52.55 | 48.42 | 51.34 | 45.53 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.75
= 47.11
The Days Sales Outstanding (DSO) for Lincoln Electric Holdings, Inc. has shown a fluctuating trend over the past five years.
In 2019, the DSO was at its lowest level at 45.53 days, indicating that on average, the company took approximately 45.53 days to collect its accounts receivable. However, in the following year (2020), the DSO increased to 51.34 days, suggesting a potential slowdown in the collection of receivables.
The DSO decreased again in 2021 to 48.42 days, indicating an improvement in receivables collection efficiency. This positive trend was somewhat disrupted in 2022 as the DSO increased to 52.55 days.
Most recently, in 2023, the DSO improved to 46.92 days, suggesting that the company has managed to collect its accounts receivable more efficiently compared to the previous year.
Overall, the fluctuation in DSO over the five-year period indicates varying levels of efficiency in managing accounts receivable. The company should continue to monitor and potentially improve its collection processes to ensure a healthy cash flow position.
Peer comparison
Dec 31, 2023