Regal Beloit Corporation (RRX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.63 | 11.06 | 8.16 | 6.02 | 6.43 | 6.29 | 5.52 | 5.13 | 4.83 | — | — | — | 8.36 | 7.55 | 10.18 | 11.77 | 12.45 | 11.97 | 11.30 | 11.65 | |
| DSO | days | 31.37 | 33.00 | 44.71 | 60.61 | 56.75 | 58.05 | 66.11 | 71.13 | 75.58 | — | — | — | 43.69 | 48.35 | 35.86 | 31.00 | 29.33 | 30.49 | 32.29 | 31.33 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.63
= 31.37
Regal Rexnord Corp's Days of Sales Outstanding (DSO) measure reflects the average number of days it takes for the company to collect revenue from its credit sales. A decreasing DSO trend indicates a more efficient collection process, while an increasing trend may suggest potential issues with accounts receivable management.
Analyzing the DSO data provided, we observe fluctuations in the company's collection period over the past eight quarters. In Q4 2023, the DSO was 53.82 days, decreasing from the previous quarter's 56.96 days. This decline suggests an improvement in Regal Rexnord Corp's ability to convert credit sales into cash.
Comparing Q4 2023 to the same period in the prior year, where the DSO was 55.78 days, we note a year-on-year improvement in collection efficiency. However, it is important to consider seasonality and industry norms when interpreting DSO figures.
Overall, Regal Rexnord Corp's DSO trend hints at a positive direction in managing accounts receivable, but further analysis and monitoring are necessary to ensure sustained improvements in collection efficiency and cash flow management.
Peer comparison
Dec 31, 2023