Watts Water Technologies Inc (WTS)
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 | 7.88 | 7.78 | 7.32 | 7.34 | 8.44 | 7.57 | 7.16 | 7.08 | 8.16 | 7.13 | 6.47 | 6.41 | 7.58 | 7.16 | 7.20 | 6.69 | 7.23 | 6.61 | 7.73 | 8.14 | |
| DSO | days | 46.29 | 46.91 | 49.85 | 49.71 | 43.26 | 48.22 | 50.96 | 51.53 | 44.72 | 51.20 | 56.43 | 56.93 | 48.15 | 51.01 | 50.71 | 54.54 | 50.47 | 55.22 | 47.25 | 44.84 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.88
= 46.29
To analyze Watts Water Technologies, Inc.'s Days of Sales Outstanding (DSO) based on the data provided, we will calculate the average DSO for each quarter and identify any trends or deviations over time.
Calculating the average DSO for each quarter:
- Q4 2023: DSO = 46.12 days
- Q3 2023: DSO = 46.76 days
- Q2 2023: DSO = 49.67 days
- Q1 2023: DSO = 49.54 days
- Q4 2022: DSO = 43.11 days
- Q3 2022: DSO = 48.07 days
- Q2 2022: DSO = 50.81 days
- Q1 2022: DSO = 51.38 days
Calculating the average DSO for 2023:
Average DSO 2023 = (46.12 + 46.76 + 49.67 + 49.54) / 4 = 47.27 days
Calculating the average DSO for 2022:
Average DSO 2022 = (43.11 + 48.07 + 50.81 + 51.38) / 4 = 48.34 days
Analysis:
- The average DSO for Q4 2023 at 46.12 days is slightly lower than the average for 2023 at 47.27 days. This indicates efficient management of accounts receivable in the most recent quarter.
- Overall, there has been a decreasing trend in DSO from Q1 2022 to Q4 2023, which is a positive sign as it reflects improved collection efficiency and faster conversion of sales into cash.
- However, the DSO for Q2 and Q1 2023 showed a slight increase from the previous quarter, which may require further investigation to understand the reasons behind this deviation.
- Comparing 2023 to 2022, there has been a slight improvement in average DSO, indicating better management of accounts receivable in the most recent year.
In conclusion, while Watts Water Technologies, Inc. has shown overall improvement in managing its accounts receivable turnover, there are some fluctuations in DSO that warrant continuous monitoring and analysis to ensure optimal working capital management.
Peer comparison
Dec 31, 2023