RBC Bearings Incorporated (RBC)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.11 | 6.13 | 3.81 | 5.51 | 5.64 | |
| DSO | days | 59.70 | 59.52 | 95.80 | 66.21 | 64.72 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.11
= 59.70
The days of sales outstanding (DSO) ratio is a measure of how long it takes a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as positive. On the other hand, a higher DSO suggests that the company is taking longer to collect payments, which can lead to cash flow challenges.
In the case of RBC Bearings Incorporated, the DSO has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the DSO was 59.70 days, which is slightly higher than the previous year's DSO of 59.52 days. This indicates that the company is collecting payments at a relatively steady pace.
Comparing the DSO to the fiscal year ending March 31, 2022, where the DSO was 95.80 days, we see a significant improvement in collection efficiency. This suggests that RBC Bearings has been more effective in managing its accounts receivable and collecting payments in a timelier manner.
In general, a downward trend in DSO is favorable as it implies improved cash flow and working capital management. However, it is important to consider industry norms and the company's specific business model when analyzing DSO.
Peer comparison
Mar 31, 2024