Lincoln Electric Holdings Inc (LECO)
Days of sales outstanding (DSO)
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.77 | 7.51 | 6.93 | 6.76 | 6.95 | 7.93 | 6.84 | 6.59 | 7.54 | 6.96 | 6.44 | 6.28 | 7.11 | 7.23 | 8.14 | 7.64 | 8.02 | 7.62 | 7.04 | 7.16 | |
| DSO | days | 46.95 | 48.59 | 52.65 | 54.02 | 52.55 | 46.00 | 53.36 | 55.38 | 48.42 | 52.44 | 56.67 | 58.09 | 51.34 | 50.47 | 44.85 | 47.78 | 45.53 | 47.93 | 51.82 | 50.98 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.77
= 46.95
To analyze Lincoln Electric Holdings, Inc.'s Days of Sales Outstanding (DSO) over the past eight quarters, we observe fluctuations in the efficiency of the company's accounts receivable management.
1. There was a consistent downward trend from Q2 2022 to Q4 2022, indicating an improvement in collecting receivables efficiently.
2. However, this positive trend reversed from Q1 2023, with DSO increasing steadily up to Q3 2023.
3. Q3 2023 marked a peak in DSO at 48.29 days, which was a notable increase from the previous quarter.
4. The average DSO over the past two quarters (Q3 2023 and Q4 2023) was 47.61 days, suggesting a recent slowdown in collecting payments from customers compared to the previous six quarters.
5. It is essential for Lincoln Electric Holdings, Inc. to closely monitor and manage its accounts receivable to maintain a healthy cash flow and ensure timely collection of payments in the future.
In conclusion, while the company previously showed improvements in managing its DSO, recent data indicates a reversal in this trend, highlighting the importance of effective accounts receivable management going forward.
Peer comparison
Dec 31, 2023