Gibraltar Industries Inc (ROCK)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.73 | 6.14 | 6.40 | 5.67 | 5.22 | |
| DSO | days | 47.23 | 59.49 | 57.02 | 64.42 | 69.99 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.73
= 47.23
Gibraltar Industries Inc's Days of Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's efficiency in collecting payments from its customers. As of December 31, 2020, the DSO stood at 69.99 days, which decreased to 64.42 days by December 31, 2021, reflecting a more timely collection of receivables.
Further progress was observed in the subsequent years, with the DSO declining to 57.02 days by December 31, 2022, and then slightly increasing to 59.49 days by December 31, 2023. Notably, the DSO experienced a significant drop to 47.23 days by December 31, 2024, indicating a notable enhancement in the company's accounts receivable management and cash flow efficiency.
Overall, Gibraltar Industries Inc's decreasing DSO trend suggests that the company has been successful in optimizing its credit and collection processes, resulting in faster conversion of sales into cash and potentially improving its liquidity position.
Peer comparison
Dec 31, 2024