Newell Brands Inc (NWL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.55 | 7.44 | 6.89 | 5.40 | 5.26 | |
| DSO | days | 55.75 | 49.03 | 52.97 | 67.61 | 69.38 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.55
= 55.75
Days Sales Outstanding (DSO) is a measure of the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates that the company is efficient in collecting revenue from its customers, while a higher DSO may suggest potential issues with receivables management.
Analyzing Newell Brands Inc's DSO over the past five years, we observe fluctuations in the metric. In 2019, the DSO was relatively high at 69.19 days, indicating a slower collection of revenue. However, in the following years, there was a downward trend, with DSO decreasing to 65.26 days in 2020, 51.70 days in 2021, 48.23 days in 2022, and further dropping to 53.63 days in 2023. This trend suggests that the company has made improvements in its accounts receivable management, leading to faster collection of revenue.
Overall, Newell Brands Inc's decreasing DSO over the years is a positive indicator of efficient revenue collection processes. However, it is essential to continue monitoring DSO to ensure that the company maintains effective accounts receivable management practices.
Peer comparison
Dec 31, 2023