Littelfuse Inc (LFUS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.05 | 8.03 | 7.43 | 6.19 | 7.30 | |
| DSO | days | 45.34 | 45.43 | 49.14 | 59.01 | 50.02 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.05
= 45.34
Littelfuse Inc's Days of Sales Outstanding (DSO) has shown a downward trend over the past five years, indicating an improvement in the company's efficiency in collecting accounts receivable. The DSO decreased from 50.02 days in 2019 to 45.34 days in 2023. This suggests that the company has been able to collect its outstanding sales more quickly, potentially enhancing cash flow and liquidity.
Furthermore, the decrease in DSO from 2020 (59.01 days) to 2023 (45.34 days) reflects Littelfuse Inc's enhanced management of accounts receivable, possibly through stricter credit policies or more efficient collection processes. This improvement in DSO signifies that the company is effectively converting its sales into cash, which is favorable for its financial health and working capital management.
Overall, the consistent decline in Littelfuse Inc's Days of Sales Outstanding demonstrates a positive trend in the company's receivables management, indicating improved efficiency and effectiveness in the collection of outstanding sales over the years.
Peer comparison
Dec 31, 2023