Xpel Inc (XPEL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.94 | 21.87 | 18.77 | 15.93 | 17.91 | |
| DSO | days | 22.90 | 16.69 | 19.44 | 22.92 | 20.38 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.94
= 22.90
The days sales outstanding (DSO) for XPEL Inc has shown fluctuations over the past five years. In 2023, the DSO increased to 22.85 days from 16.59 days in 2022, marking a significant rise. This suggests that the company took longer to collect revenue from its customers in 2023 compared to the previous year.
Looking further back, in 2021 and 2020, the DSO was 19.39 days and 22.84 days respectively, showing some variability in collection periods. However, the DSO was relatively consistent in 2019 at 20.36 days.
The increase in DSO in 2023 could indicate potential issues with the company's accounts receivable management or changes in customer payment patterns. It may be beneficial for XPEL Inc to review its credit policies, collections processes, and customer creditworthiness to improve cash flow efficiency and overall financial performance.