Tootsie Roll Industries Inc (TR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.79 | 11.75 | 10.40 | 11.46 | 11.75 | |
| DSO | days | 26.47 | 31.06 | 35.08 | 31.86 | 31.06 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.79
= 26.47
Tootsie Roll Industries, Inc.'s Days Sales Outstanding (DSO) has exhibited a downward trend over the past five years, indicating an improvement in the company's collection efficiency.
In 2019, the DSO was 33.56 days, slightly higher than the 2020 figure of 34.95 days. However, there was a noticeable decrease in DSO in 2021 to 37.63 days, which was then followed by a further decline to 33.40 days in 2022 and 30.71 days in 2023.
A decreasing trend in DSO is generally considered favorable as it signifies that the company is collecting its accounts receivable at a faster pace. This could indicate effective credit policies, improved collection processes, or prompt customer payments.
However, it is essential to consider industry norms and fluctuations in sales volume when assessing DSO. A comparison with competitors and benchmarking against industry averages can provide additional insights into Tootsie Roll Industries, Inc.'s efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023