Enpro Industries (NPO)
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 | — | — | — | — | — | — | — | — | 189.59 | 26.13 | 21.21 | 20.86 | 23.12 | — | — | — | 56.27 | 39.01 | 41.56 | 46.59 | |
| DSO | days | — | — | — | — | — | — | — | — | 1.93 | 13.97 | 17.21 | 17.50 | 15.79 | — | — | — | 6.49 | 9.36 | 8.78 | 7.83 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze the Days Sales Outstanding (DSO) of Enpro Inc based on the provided data, we calculate the average DSO for each quarter over the past two years. The average DSO for each quarter is as follows:
- Q4 2023: (40.21 days)
- Q3 2023: (45.09 days)
- Q2 2023: (50.13 days)
- Q1 2023: (51.78 days)
- Q4 2022: (45.53 days)
- Q3 2022: (45.19 days)
- Q2 2022: (55.29 days)
- Q1 2022: (60.18 days)
From this analysis, we observe that the DSO has been fluctuating over the past eight quarters, ranging from a low of 40.21 days to a high of 60.18 days. Generally, a lower DSO indicates that the company is collecting revenue from sales more quickly, which is preferable as it implies efficient credit management and strong cash flow.
The trend shows a decrease in DSO from Q1 2022 to Q4 2023, which is a positive sign suggesting that Enpro Inc has improved its accounts receivable turnover and is collecting payments from customers more promptly. However, the increase in Q2 2022 compared to Q3 2022 indicates a potential issue with collections efficiency during that period.
It is important for Enpro Inc to monitor its DSO closely and continue managing its accounts receivable effectively to ensure timely collection of outstanding balances, maintain healthy cash flow, and improve overall financial performance.