Gentherm Inc (THRM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.63 | 5.71 | 4.72 | 5.33 | 3.91 | |
| DSO | days | 64.88 | 63.94 | 77.30 | 68.53 | 93.36 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.63
= 64.88
The Days Sales Outstanding (DSO) of Gentherm Inc has shown a positive trend over the past five years, indicating an improvement in the company's accounts receivable management. The DSO decreased from 93.36 days as of December 31, 2020, to 64.88 days as of December 31, 2024. This indicates that the company has been able to collect its outstanding sales revenue more efficiently over the years.
On a year-over-year basis, there are fluctuations in DSO figures, with a notable decrease from 2020 to 2021, followed by a slight increase in 2022, and then a further decrease in 2023 and 2024. Overall, the decreasing trend implies that the company has been successful in converting its credit sales into cash more rapidly, which is a positive sign of effective accounts receivable management.
A lower DSO indicates that Gentherm Inc is collecting payments from customers more quickly, potentially improving its cash flow and overall working capital efficiency. This trend suggests that the company is effectively managing its credit policies and collections processes, which could lead to enhanced liquidity and financial performance in the long run.
Peer comparison
Dec 31, 2024