Stanley Black & Decker Inc (SWK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.14 | 9.30 | 8.94 | — | 12.78 | — | — | — | 9.64 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 35.99 | 39.23 | 40.84 | — | 28.57 | — | — | — | 37.88 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.14
= 35.99
The days of sales outstanding (DSO) for Stanley Black & Decker Inc have exhibited some fluctuations over the past few quarters. As of Dec 31, 2023, the DSO stands at 35.99 days, which indicates that on average, the company takes approximately 36 days to collect its accounts receivable. This is higher compared to the DSO of 28.57 days reported on Dec 31, 2022, suggesting a potential deterioration in the efficiency of accounts receivable collection.
The DSO increased from 28.57 days in Dec 31, 2022, to 39.23 days in Sep 30, 2023, and further to 40.84 days in Jun 30, 2023. However, data for Mar 31, 2023, is not available for analysis. This upward trend in DSO may indicate a longer collection period for the company's sales, raising concerns about the liquidity and efficiency of its accounts receivable management.
It is essential for the company to monitor and potentially improve its DSO metric to ensure timely collection of accounts receivable, which can positively impact its cash flow and working capital management. Further analysis and comparison with industry benchmarks could provide additional insights into the effectiveness of Stanley Black & Decker Inc's credit and collection policies.
Peer comparison
Dec 31, 2023