Stericycle Inc (SRCL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.68 | 6.56 | 6.30 | 6.69 | 5.84 | |
| DSO | days | 78.02 | 55.66 | 57.98 | 54.53 | 62.55 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.68
= 78.02
The days of sales outstanding (DSO) for Stericycle Inc. have shown variability over the past five years. In 2023, the DSO increased to 76.03 days from 55.94 days in 2022. This indicates that it took on average 76.03 days for the company to collect revenue from its customers in 2023, reflecting a deterioration in its accounts receivable collection efficiency compared to the previous year.
Comparing 2023 to 2021 and 2020, the DSO also increased from 57.97 days and 51.94 days, respectively, suggesting a trend of lengthening collection periods. However, it's worth noting that the DSO in 2023 is lower than in 2019 when it was 60.04 days.
The increase in DSO could be a cause for concern as it indicates a potential liquidity issue or challenges in collecting payments from customers promptly. This trend should be monitored closely to ensure efficient working capital management and cash flow generation for the company.
Peer comparison
Dec 31, 2023