Gentherm Inc (THRM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.71 | 4.72 | 5.33 | 3.91 | 5.71 | |
| DSO | days | 63.94 | 77.30 | 68.53 | 93.36 | 63.92 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.71
= 63.94
The Days Sales Outstanding (DSO) ratio for Gentherm Inc has fluctuated over the past five years. In 2023, the DSO decreased to 72.61 days from 84.77 days in 2022, indicating that the company was able to collect its accounts receivable more efficiently. This could imply effective credit management or improved collection processes.
Comparing the DSO to previous years, we see that in 2021, the DSO was slightly higher at 72.12 days, but still lower than in 2022. The significant increase to 96.49 days in 2020 suggests that the company may have encountered challenges in collecting payments from customers during that period. However, the DSO improved in 2019 to 70.14 days, indicating efficient accounts receivable management.
Overall, the trend in DSO for Gentherm Inc shows some variation year over year, with 2023 reflecting a positive trend in collecting sales revenues compared to the prior year. Monitoring DSO is crucial for assessing the effectiveness of the company's credit policies and collection efforts. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's liquidity and cash flow management.
Peer comparison
Dec 31, 2023