Titan International Inc (TWI)

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		7.61	8.02	7.27	6.54	6.99	7.52	6.82	6.14	6.33	6.16	5.51	5.29	6.08	6.23	6.45	6.30	7.24	6.73	5.63	5.31
DSO	days	47.98	45.52	50.21	55.81	52.23	48.55	53.54	59.42	57.65	59.22	66.24	69.04	60.04	58.56	56.60	57.96	50.38	54.24	64.83	68.74

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.61
= 47.98

Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days a company takes to collect revenue after a sale has been made. A lower DSO value suggests a more efficient collections process, while a higher DSO value may indicate potential issues with collecting accounts receivable in a timely manner.

Analyzing the DSO trend for Titan International, Inc. over the past eight quarters reveals fluctuations in the company's collections efficiency. In Q1 2022, the DSO was at its highest at 58.43 days, indicating a longer time taken to collect revenue. Since then, there has been a downward trend in DSO, with Q4 2023 showing the lowest DSO at 44.15 days.

The improvement in DSO over the quarters suggests that Titan International, Inc. has been more effective in managing its accounts receivable and collecting payments from customers more promptly. This could be a positive sign of the company's cash flow management and potentially improving liquidity.

However, it is important to note that a sudden increase in DSO in Q1 2023 compared to the previous quarter could indicate potential challenges with collections that quarter. Monitoring DSO closely and identifying the reasons behind any fluctuations can help management address underlying issues and maintain a healthy cash conversion cycle.