Titan International Inc (TWI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.59 | 6.99 | 6.33 | 6.08 | 7.21 | |
| DSO | days | 48.06 | 52.23 | 57.65 | 60.02 | 50.61 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.59
= 48.06
The Days Sales Outstanding (DSO) ratio for Titan International, Inc. has displayed a fluctuating trend over the past five years. In 2023, the DSO decreased to 44.15 days from 44.98 days in 2022, indicating an improvement in the collection of accounts receivable. This may suggest that the company has been more efficient in converting its credit sales into cash during the current year.
Comparing to the DSO of 52.57 days in 2021 and 56.10 days in 2020, the decreasing trend in DSO is a positive sign as it signifies the company's ability to collect outstanding receivables quicker over the years. However, it's worth noting that the DSO was slightly lower at 47.37 days in 2019, indicating that the company had achieved a better collection period in that year.
Overall, the recent decrease in DSO indicates an improvement in Titan International's accounts receivable management efficiency, which may potentially enhance its cash flow and liquidity position.
Peer comparison
Dec 31, 2023