Silgan Holdings Inc (SLGN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.70 | 9.55 | 7.83 | 7.77 | 8.89 | |
| DSO | days | 37.63 | 38.22 | 46.64 | 46.95 | 41.05 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.70
= 37.63
Silgan Holdings Inc.'s Days of Sales Outstanding (DSO) has shown a mixed trend over the past five years. The DSO decreased from 45.94 days in 2020 to 36.54 days in 2023, indicating that the company has been able to collect its accounts receivable more efficiently over this period. This improvement suggests stronger cash flow management or possibly more effective credit policies in place.
Although there was a slight increase in DSO from 2019 to 2021, the overall trend seems positive due to the subsequent decrease in the metric. It is important to monitor DSO closely as high DSO levels could indicate potential liquidity issues or inefficiencies in the company's accounts receivable collection process.
In conclusion, Silgan Holdings Inc.'s DSO has shown improvement over the years, reflecting a more efficient collection of accounts receivable, which could positively impact the company's cash flow and overall financial health.
Peer comparison
Dec 31, 2023