Somnigroup International Inc. (SGI)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.47 | 10.28 | 10.15 | 10.80 | 9.40 | 10.39 | 10.60 | 11.65 | 10.43 | 10.73 | 12.02 | 11.75 | 9.07 | 9.52 | 9.81 | 9.58 | 7.92 | 9.30 | 8.68 | 8.35 | |
| DSO | days | 34.88 | 35.52 | 35.97 | 33.81 | 38.83 | 35.12 | 34.45 | 31.34 | 34.99 | 34.01 | 30.36 | 31.05 | 40.24 | 38.35 | 37.21 | 38.09 | 46.09 | 39.23 | 42.03 | 43.72 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.47
= 34.88
The days of sales outstanding (DSO) for Somnigroup International Inc. has shown some fluctuations over the analyzed period. The DSO decreased from 43.72 days on December 31, 2019, to 31.05 days on December 31, 2021, which indicates a significant improvement in the company's collection efficiency.
However, starting from March 31, 2022, the DSO began to increase gradually, reaching 35.52 days on June 30, 2024. This uptrend signifies a potential slowdown in the company's accounts receivable turnover and collection process.
It is essential for Somnigroup International Inc. to closely monitor and manage its DSO to ensure optimal cash flow and efficiency in collecting outstanding receivables. Analyzing the reasons behind the recent increase in DSO can help the company implement strategies to improve credit policies, streamline collection processes, and maintain healthy working capital levels.
Peer comparison
Sep 30, 2024