LeMaitre Vascular Inc (LMAT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.45 | 14.59 | 15.61 | 13.17 | 14.14 | |
| DSO | days | 23.63 | 25.02 | 23.38 | 27.71 | 25.82 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.45
= 23.63
Lemaitre Vascular Inc's Days Sales Outstanding (DSO) measures how long, on average, it takes the company to collect revenue from its sales. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficient cash flow management.
In this case, we observe the following trend in Lemaitre Vascular Inc's DSO over the past five years:
- Dec 31, 2023: 47.28 days
- Dec 31, 2022: 49.77 days
- Dec 31, 2021: 46.40 days
- Dec 31, 2020: 55.17 days
- Dec 31, 2019: 51.60 days
The company's DSO has fluctuated over the years but has generally shown a decreasing trend from 2019 to 2021, indicating improved efficiency in collecting accounts receivable. However, the slight increase in DSO in 2022 and a further increase in 2023 may suggest a potential slowdown in collections or changes in the company's sales and credit policies that could impact cash flows in the short term.
The management should closely monitor DSO levels to ensure efficient working capital management and timely collections to avoid any liquidity issues in the future. Overall, a thorough analysis of the underlying factors driving the changes in DSO is recommended to assess the company's financial health and operational performance accurately.
Peer comparison
Dec 31, 2023