Watts Water Technologies Inc (WTS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.88 | 8.44 | 8.16 | 7.57 | 7.22 | |
| DSO | days | 46.29 | 43.26 | 44.72 | 48.25 | 50.57 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.88
= 46.29
Watts Water Technologies, Inc.'s Days Sales Outstanding (DSO) has shown a decreasing trend over the past five years. In 2023, the DSO was 46.12 days, which was slightly higher than the previous year. The decrease in DSO from 2020 to 2023 indicates an improvement in the company's ability to collect its accounts receivable more efficiently.
A lower DSO suggests that Watts Water Technologies, Inc. is collecting payments from its customers at a faster pace, which could improve its cash flow and liquidity position. The company has been effectively managing its accounts receivable turnover, reflecting a positive aspect of its working capital management.
Overall, the decreasing trend in DSO for Watts Water Technologies, Inc. indicates that the company has been successful in optimizing its credit policies and enhancing its collections processes, contributing to its financial health and efficiency in managing customer credit.
Peer comparison
Dec 31, 2023