Westinghouse Air Brake Technologies Corp (WAB)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.00 | 7.99 | 7.75 | 7.06 | 7.57 | |
| DSO | days | 40.57 | 45.66 | 47.08 | 51.72 | 48.20 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.00
= 40.57
The days of sales outstanding (DSO) of Westinghouse Air Brake Technologies Corp have shown a declining trend over the past five years. The DSO was 48.20 days as of December 31, 2020, and decreased to 40.57 days by December 31, 2024. This indicates that the company has been able to collect its accounts receivable faster over this period.
A lower DSO suggests that the company is more efficient in collecting payments from customers, which can improve cash flow and overall liquidity. A decreasing trend in DSO may also indicate effective credit management practices, tighter credit policies, or improved collection processes.
It is important to monitor the DSO metric over time to ensure that the trend aligns with the company's goals and industry benchmarks. Overall, the decreasing DSO for Westinghouse Air Brake Technologies Corp is a positive indicator of its ability to manage its accounts receivable effectively.
Peer comparison
Dec 31, 2024