Enpro Industries (NPO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | 224.84 | 23.12 | 46.87 | |
| DSO | days | — | — | 1.62 | 15.79 | 7.79 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) for Enpro Inc have shown a fluctuating trend over the past five years. In 2023, the DSO was 40.21 days, indicating that, on average, it takes the company approximately 40 days to collect revenue from its customers. This represents an improvement from the previous year when the DSO was 45.53 days.
Comparing the DSO to 2021 and 2020, we observe a general declining trend in DSO, indicating that the company has been more efficient in collecting payments from its customers over the past few years. In 2021, the DSO was 56.58 days, significantly higher than in 2022 and 2023. However, in 2020, the DSO was 48.67 days, indicating a slight improvement compared to 2021.
Overall, the decreasing trend in DSO over the past few years suggests that Enpro Inc has been managing its accounts receivable more efficiently, possibly through improved credit policies, better collection practices, or a more streamlined invoicing process. However, it is essential for the company to continue monitoring and managing its DSO to ensure timely collection of receivables and maintain healthy cash flows.