National Presto Industries Inc (NPK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.77 | 4.39 | 6.39 | 6.24 | 6.96 | |
| DSO | days | 53.91 | 83.13 | 57.15 | 58.52 | 52.43 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.77
= 53.91
The Days of Sales Outstanding (DSO) for National Presto Industries Inc has shown some fluctuation over the past five years. In particular, there was a significant decrease in DSO in 2019 compared to 2020, indicating that the company was able to collect its accounts receivable more efficiently that year. However, DSO increased in 2021 and 2022, suggesting potential challenges in collecting receivables during those years.
Notably, in 2023, the DSO decreased to 53.91 days, which is a positive sign as it indicates that the company has improved its collections process and is able to convert its accounts receivable into cash more quickly. This could be a result of more stringent credit policies, enhanced collection efforts, or improved customer payment behavior. Overall, a lower DSO signifies that the company is managing its accounts receivable effectively, which could lead to improved cash flow and liquidity.
It is important for investors and stakeholders to monitor DSO trends over time to assess the company's ability to collect outstanding revenues promptly and efficiently.
Peer comparison
Dec 31, 2023