RBC Bearings Incorporated (RBC)
Days of sales outstanding (DSO)
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.11 | 6.71 | 6.21 | 5.97 | 6.13 | 6.68 | — | — | 3.81 | — | — | — | 5.51 | 5.97 | 6.17 | 6.20 | 5.85 | 6.20 | 5.78 | 5.68 | |
| DSO | days | 59.70 | 54.43 | 58.79 | 61.18 | 59.52 | 54.62 | — | — | 95.80 | — | — | — | 66.21 | 61.12 | 59.17 | 58.87 | 62.38 | 58.91 | 63.19 | 64.27 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.11
= 59.70
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates that the company is able to collect its accounts receivable more quickly, which is generally a positive sign.
Analyzing RBC Bearings Incorporated's DSO over the past few quarters, we can see that there has been some fluctuation. In the most recent quarter ending March 31, 2024, the DSO was 59.70 days, which is slightly higher compared to the previous quarter's DSO of 54.43 days. This increase suggests that RBC Bearings may be taking slightly longer to collect its accounts receivable, which could potentially impact its cash flow.
Looking further back, there is some variability in the DSO figures, with some quarters showing higher DSO values, such as 95.80 days in the quarter ending March 31, 2022. This indicates that there have been periods where RBC Bearings took longer to collect its sales revenue.
Overall, it is important for RBC Bearings to closely monitor its DSO trend to ensure efficient management of its accounts receivable. A consistently high DSO could signal potential issues with credit policies, collection procedures, or the financial health of its customers. Conversely, a consistently low DSO may indicate aggressive credit policies that could lead to an increased risk of bad debt. Striking a balance between prompt collections and maintaining good customer relationships is key for RBC Bearings to optimize its cash flow and financial performance.
Peer comparison
Mar 31, 2024