Tempur Sealy International Inc (TPX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.80 | 11.65 | 11.75 | 9.58 | 8.35 | |
| DSO | days | 33.81 | 31.34 | 31.05 | 38.09 | 43.72 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.80
= 33.81
The days sales outstanding (DSO) of Tempur Sealy International Inc has shown a downward trend over the past five years, indicating an improvement in the company's collection efficiency. In 2019, the DSO was the highest at 43.72 days and has consistently decreased to 31.97 days by the end of 2023. This implies that the company is now able to collect its accounts receivable more quickly.
A lower DSO indicates that Tempur Sealy International Inc is managing its accounts receivable more effectively, converting credit sales into cash faster. This improvement can be attributed to better credit policies, efficient collection practices, or a shift in customer payment behavior.
Overall, the decreasing trend in DSO is a positive sign for the company's financial health and liquidity position, as it reflects an enhanced ability to convert sales into cash promptly.
Peer comparison
Dec 31, 2023