PACCAR Inc (PCAR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze Paccar Inc.'s days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend. In 2023, the DSO increased to 205.42 days from 198.99 days in 2022, indicating that it took the company longer to collect its accounts receivable compared to the previous year. This may suggest a potential slowdown in receivables turnover or challenges in collecting payments from customers.
However, when comparing to 2021, where the DSO was 209.42 days, there was a slight improvement in the efficiency of accounts receivable collection. The decrease in DSO from 253.71 days in 2020 to 190.94 days in 2019 reflects a positive trend in collecting receivables more swiftly.
Overall, although there have been fluctuations in the DSO over the years, the company should strive to maintain a balance between timely collection of receivables and maintaining good customer relations to ensure a healthy cash flow cycle. Further analysis and comparison with industry benchmarks may provide additional insights into Paccar Inc.'s efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023