Tempur Sealy International Inc (TPX)
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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.80 | 9.40 | 10.39 | 10.60 | 11.65 | 10.43 | 10.73 | 12.02 | 11.75 | 9.07 | 9.52 | 9.81 | 9.58 | 7.92 | 9.30 | 8.68 | 8.35 | 6.75 | 7.30 | 7.76 | |
| DSO | days | 33.81 | 38.83 | 35.12 | 34.45 | 31.34 | 34.99 | 34.01 | 30.36 | 31.05 | 40.24 | 38.35 | 37.21 | 38.09 | 46.09 | 39.23 | 42.03 | 43.72 | 54.07 | 50.01 | 47.03 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.80
= 33.81
To analyze Tempur Sealy International Inc's days of sales outstanding (DSO) over the past eight quarters, we can observe a fluctuating trend in the company's collection efficiency.
In Q4 2023, the DSO decreased to 31.97 days from the previous quarter, indicating an improvement in the company's ability to collect its accounts receivable efficiently compared to Q3 2023, where it was 38.83 days. This reduction may suggest more effective credit control measures or quicker customer payments in the most recent quarter.
Looking back further, we see a general pattern of variability in DSO over the quarters, with levels ranging from 30.36 days in Q1 2022 to 38.83 days in Q3 2023. These fluctuations can be influenced by factors such as seasonal sales patterns, changes in credit terms, or shifts in customer payment behavior.
Overall, while the recent decrease in DSO in Q4 2023 is a positive sign of improved accounts receivable management, it is important for Tempur Sealy International Inc to continue monitoring and managing its collection processes to ensure timely cash inflows and sustainable liquidity.
Peer comparison
Dec 31, 2023