Polaris Industries Inc (PII)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 27.93 | 23.44 | 33.20 | 26.67 | 30.08 | |
| DSO | days | 13.07 | 15.57 | 10.99 | 13.69 | 12.13 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.93
= 13.07
The Days of Sales Outstanding (DSO) is a measure of the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is able to collect payments more quickly, which is generally a positive sign.
Looking at the trend of DSO for Polaris Inc over the past five years, we observe the following:
- In 2019, the DSO was 11.99 days, indicating that it took the company approximately 12 days on average to collect payment.
- In 2020, the DSO increased to 13.56 days, suggesting a slight deterioration in the company's collection efficiency.
- In 2021, there was a significant improvement as the DSO decreased to 10.89 days, signaling that the company was able to collect payments more swiftly.
- In 2022, the DSO increased again to 15.44 days, reversing the positive trend seen in the previous year.
- In 2023, the DSO decreased to 12.89 days, showing a partial recovery from the increase in the previous year.
Overall, the DSO trend for Polaris Inc has been somewhat volatile, with fluctuations in collection efficiency. It is crucial for the company to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain a healthy cash flow position.