Regal Beloit Corporation (RRX)

Days Sales Outstanding (DSO) is a financial metric that indicates the average number of days a company takes to collect revenue after a sale is made. A lower DSO value typically suggests that the company is efficient in collecting its accounts receivable, while a higher DSO value may indicate potential issues with collections or credit policies.

Analyzing the DSO trend for Regal Rexnord Corp over the past five years, we observe fluctuations in the collection efficiency of the company. In 2023, the DSO decreased to 53.82 days from 55.78 days in 2022, indicating an improvement in the company's ability to convert sales into cash. This reduction in DSO suggests that Regal Rexnord Corp has become more efficient in collecting outstanding receivables.

Comparing the most recent DSO value to previous years, it is also lower than the DSO reported in 2021 (75.27 days) and has remained relatively consistent with the DSO in 2019 (52.01 days). This indicates that Regal Rexnord Corp has been able to maintain a relatively stable collection period over the past few years.

Overall, the decreasing trend in Days Sales Outstanding for Regal Rexnord Corp is a positive indication of improved efficiency in accounts receivable management and the company's ability to collect revenue promptly. However, further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in managing its receivables effectively.

Peer comparison

Dec 31, 2023