Interface Inc (TILE)
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 | Jul 5, 2020 | Apr 5, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.58 | 8.64 | 7.58 | — | 6.91 | — | — | — | 6.82 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 48.17 | 42.25 | 48.17 | — | 52.80 | — | — | — | 53.52 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.58
= 48.17
In analyzing Interface Inc.'s days of sales outstanding (DSO) over the past eight quarters, we observe fluctuations in the DSO metric. DSO represents the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates efficient accounts receivable management, while a higher DSO may suggest issues with collections or credit policies.
Interface Inc.'s DSO ranged from a low of 41.29 days in Q3 2023 to a high of 51.41 days in Q4 2022. Generally, a lower DSO is preferable as it signifies quicker conversion of sales into cash. The decreasing trend from Q4 2022 to Q3 2023 suggests improved efficiency in collecting receivables during this period.
It is essential for Interface Inc. to continue monitoring and managing its DSO effectively to ensure timely collection of outstanding receivables and optimize cash flow. Additionally, comparing the company's DSO to industry benchmarks can provide valuable insights into its performance in managing accounts receivable.
Peer comparison
Dec 31, 2023