Sturm Ruger & Company Inc (RGR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.98 | 9.08 | 9.10 | 12.81 | 9.83 | |
| DSO | days | 45.75 | 40.18 | 40.09 | 28.49 | 37.13 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.98
= 45.75
The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect on its accounts receivable. Lower DSO values indicate that the company is collecting payments more quickly, which can be a positive sign of efficiency in managing receivables.
In the case of Sturm Ruger & Company Inc, the DSO has shown fluctuations over the years based on the provided data:
- As of December 31, 2020, the DSO was 37.13 days.
- By December 31, 2021, the DSO had decreased to 28.49 days, indicating improved efficiency in collecting payments.
- The DSO increased to 40.09 days by December 31, 2022, and trended slightly higher to 40.18 days by December 31, 2023.
- The DSO reached its highest value of 45.75 days by December 31, 2024.
The fluctuation in DSO values should be analyzed in conjunction with other financial metrics to understand the underlying reasons for the changes. A rising DSO may signal potential issues with collections, credit policies, or customer payment behavior. Conversely, a declining DSO could signify improvements in these areas and better management of receivables.
It is recommended for stakeholders to monitor the DSO trend over time and assess the company's accounts receivable management strategies to ensure timely collection and healthy cash flow processes.
Peer comparison
Dec 31, 2024