Snap-On Inc (SNA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.39 | 3.38 | 3.45 | 3.07 | 3.07 | |
| DSO | days | 107.62 | 108.07 | 105.89 | 118.83 | 118.93 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.39
= 107.62
Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates more efficient accounts receivable management and faster cash conversion, while a higher DSO may suggest potential issues with collecting receivables.
Analyzing Snap-On Inc's DSO over the past five years, we can see a fluctuating trend. In 2023, the DSO was 107.62 days, showing a slight improvement from 2022 (108.07 days) and 2021 (105.89 days). This suggests a better management of accounts receivable, leading to faster cash collection from customers.
However, in 2020 and 2019, Snap-On Inc had higher DSO figures of 118.83 days and 118.93 days respectively, indicating a longer time to collect receivables in those years. This could be a red flag for potential issues with credit policies, customer payment terms, or collection processes during those periods.
Overall, Snap-On Inc's DSO trend indicates some variability in the efficiency of their accounts receivable management over the past five years. Monitoring DSO closely and identifying the factors behind these fluctuations can help improve cash flow and overall financial performance.
Peer comparison
Dec 31, 2023