Teleflex Incorporated (TFX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.56	6.74	7.19	6.30	6.03
DSO	days	55.66	54.12	50.75	57.92	60.52

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.56
= 55.66

To evaluate Teleflex Incorporated's Days Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend. In 2019 and 2020, the DSO was relatively high at 58.88 days and 56.84 days, respectively. However, in the subsequent years, there was a notable improvement as the DSO decreased to 49.83 days in 2021, further dropping to 53.47 days in 2022, and then slightly increasing to 54.42 days in 2023.

A lower DSO generally indicates that the company is collecting its accounts receivable more efficiently, which could signify effective credit policies or prompt customer payments. Conversely, a higher DSO may suggest delays in receiving payments from customers, potentially impacting cash flow and liquidity.

While the recent increase in DSO in 2023 might raise some concerns, it is essential to assess this metric in conjunction with other financial ratios and factors affecting the company's operations and industry dynamics to gain a more comprehensive understanding of Teleflex's overall financial performance and working capital management.