Westinghouse Air Brake Technologies Corp (WAB)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.96 | 7.69 | 7.90 | 7.93 | 7.99 | 6.90 | 7.03 | 7.15 | 7.76 | 7.92 | 7.79 | 7.77 | 7.06 | 7.90 | 7.40 | 7.38 | 7.57 | 7.59 | 8.15 | 4.99 | |
| DSO | days | 40.76 | 47.45 | 46.18 | 46.02 | 45.66 | 52.87 | 51.94 | 51.06 | 47.06 | 46.06 | 46.85 | 46.96 | 51.67 | 46.20 | 49.34 | 49.48 | 48.20 | 48.08 | 44.79 | 73.09 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.96
= 40.76
The days of sales outstanding (DSO) for Westinghouse Air Brake Technologies Corp demonstrates a trend of fluctuation over the analyzed period. Starting at 73.09 days on March 31, 2020, the DSO decreased significantly to 44.79 days by June 30, 2020. This reduction in DSO suggests a more efficient collection of accounts receivable or possibly a change in sales patterns.
Subsequently, the DSO experienced some volatility but generally stayed within a relatively stable range of around 45 to 50 days until December 31, 2021, when it increased to 51.67 days. This uptick could indicate potential issues with collections or extended credit terms.
From March 31, 2022, to December 31, 2024, the DSO remained fairly consistent, fluctuating between 45 and 52 days. However, the DSO saw a notable decrease to 40.76 days by December 31, 2024, possibly suggesting more effective accounts receivable management.
Overall, the fluctuations in DSO indicate changes in the company's ability to collect outstanding receivables promptly. The downward trends may reflect improvements in collection processes, while upward movements could signal challenges in credit control or customer payment behavior. Monitoring DSO regularly will be crucial for assessing the company's liquidity and operational efficiency in managing accounts receivable.
Peer comparison
Dec 31, 2024