Triumph Group Inc (TGI)
Days of sales outstanding (DSO)
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.62 | 9.09 | 6.89 | 7.30 | 7.97 | 7.28 | 7.69 | 8.40 | 8.17 | 9.69 | 9.40 | 9.31 | 9.63 | 12.50 | 10.16 | 10.38 | 8.07 | 10.23 | 9.29 | 9.84 | |
| DSO | days | 42.34 | 40.15 | 53.01 | 49.98 | 45.80 | 50.16 | 47.48 | 43.43 | 44.67 | 37.65 | 38.84 | 39.19 | 37.88 | 29.20 | 35.94 | 35.18 | 45.24 | 35.68 | 39.30 | 37.09 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.62
= 42.34
The Days Sales Outstanding (DSO) for Triumph Group Inc has exhibited fluctuating trends over the past several quarters. DSO represents the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates faster collection of accounts receivable and better liquidity management.
From December 2020 to March 2022, Triumph Group Inc experienced a decreasing trend in DSO, reaching its lowest point of 29.20 days in December 2020. This suggests an improvement in the company's efficiency in collecting payments from customers.
However, starting from March 2022, DSO began to increase, reaching a peak of 53.01 days in September 2023 before decreasing to 42.34 days in March 2024. The spike in DSO from June 2022 to September 2023 indicates a potential slowdown in collecting payments from customers, which could impact cash flow and liquidity.
It is important for Triumph Group Inc to monitor and manage its DSO closely to ensure timely collection of accounts receivable and maintain healthy cash flow. Analyzing the reasons behind fluctuations in DSO, such as changes in credit policies, customer payment behavior, or economic conditions, can help the company make informed decisions to optimize working capital management.
Peer comparison
Mar 31, 2024