Stanley Black & Decker Inc (SWK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.14 | 12.78 | 9.64 | 7.66 | 8.17 | |
| DSO | days | 35.99 | 28.57 | 37.88 | 47.63 | 44.69 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.14
= 35.99
Stanley Black & Decker Inc's days of sales outstanding (DSO) has fluctuated over the past five years, ranging from a low of 28.57 days in 2022 to a high of 47.63 days in 2020. This metric measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster collections and better liquidity, while a higher DSO may suggest potential issues with accounts receivable management or slower collections.
The decrease in DSO from 44.69 days in 2019 to 28.57 days in 2022 is a positive trend, indicating improved efficiency in collecting outstanding sales revenue. However, the subsequent increase to 35.99 days in 2023 signals a slight deterioration in collection times compared to the prior year.
It is essential for Stanley Black & Decker Inc to continue monitoring and managing their DSO effectively to ensure timely collection of receivables and maintain healthy cash flow levels. Analyzing trends in DSO can help the company assess the effectiveness of its credit and collection policies and identify areas for improvement in managing accounts receivable turnover.
Peer comparison
Dec 31, 2023