Rogers Corporation (ROG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.30	5.41	5.73	5.92	7.28
DSO	days	57.90	67.49	63.72	61.61	50.12

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.30
= 57.90

The Days Sales Outstanding (DSO) for Rogers Corp. has shown a fluctuating trend over the five-year period from 2019 to 2023. The DSO measures the average number of days a company takes to collect its accounts receivable.

In 2019, Rogers Corp. had a DSO of 51.43 days, indicating that on average, it took the company about 51 days to collect its outstanding sales. Over the following years, the DSO increased to 62.49 days in 2020, 65.05 days in 2021, and peaked at 68.14 days in 2022 before slightly decreasing to 66.78 days in 2023.

The increasing trend in DSO from 2020 to 2022 suggests that Rogers Corp. may be facing challenges in collecting its accounts receivable efficiently, possibly due to changes in customer payment behavior, credit policies, or economic conditions. The slight decrease in DSO in 2023 indicates a potential improvement in the company's accounts receivable management, but the overall trend warrants further monitoring.

Overall, a higher DSO implies that the company takes longer to convert its sales into cash, potentially impacting its liquidity and cash flow. Monitoring and managing DSO effectively is crucial for Rogers Corp. to optimize its working capital and maintain a healthy financial position.