Gibraltar Industries Inc (ROCK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.14 | 6.40 | 5.67 | 5.22 | 6.09 | |
| DSO | days | 59.49 | 57.02 | 64.42 | 69.99 | 59.94 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.14
= 59.49
To analyze the trend in Gibraltar Industries Inc.'s Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating pattern. The DSO indicates the average number of days it takes for the company to collect revenue after making a sale.
In 2019, the DSO was at its lowest point, standing at 51.40 days, suggesting efficient collections and quick turnover of accounts receivable. However, in 2020, there was an increase to 69.99 days, indicating a slowdown in collections and potentially an extension of credit terms to customers.
The trend reversed in 2021, as the DSO decreased to 64.42 days, but remained relatively high compared to the previous years. In 2022, there was a further improvement in collections efficiency, with the DSO decreasing to 57.02 days. The most recent data point in 2023 shows a decrease to 59.49 days, indicating continued progress in managing accounts receivable.
Overall, while there have been fluctuations in the DSO over the years, the general trend shows that Gibraltar Industries Inc. has been working towards optimizing its collections process and improving efficiency in converting sales into cash.
Peer comparison
Dec 31, 2023