SPX Corp (SPXC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.12 | 5.50 | 5.19 | 5.16 | 5.20 | |
| DSO | days | 59.62 | 66.31 | 70.29 | 70.78 | 70.19 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.12
= 59.62
Analyzing the days of sales outstanding (DSO) for SPX Corp over the past five years reveals a trend of improving efficiency in collecting accounts receivable. The DSO decreased from 70.19 days in 2019 to 59.62 days in 2023, indicating that the company has been able to collect its outstanding receivables more quickly.
This reduction in DSO suggests that SPX Corp has been managing its accounts receivable more effectively over the years, possibly by implementing better credit policies, enhancing collection processes, or maintaining healthier customer relationships. A lower DSO indicates that the company is converting its sales into cash more rapidly, which can improve liquidity and working capital management.
Overall, the decreasing trend in DSO for SPX Corp is a positive indicator of the company's ability to efficiently manage its accounts receivable and ensure a steady flow of cash into the business. This improvement in receivables management may contribute to the company's financial stability and operational performance in the long run.
Peer comparison
Dec 31, 2023