Zurn Elkay Water Solutions Corporation (ZWS)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Mar 31, 2020
Receivables turnover 7.06 6.74 5.39 5.14 6.18
DSO days 51.73 54.18 67.77 71.00 59.07

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.06
= 51.73

The Days of Sales Outstanding (DSO) ratio for Zurn Elkay Water Solutions Corporation has shown fluctuations over the years based on the data provided. The DSO measures the average number of days it takes for the company to collect revenue after making a sale.

- As of March 31, 2020, the DSO stood at 59.07 days, indicating that on average, it took the company about two months to collect payments from its customers.
- By December 31, 2021, the DSO had increased to 71.00 days, suggesting a slowdown in the collection process compared to the previous year.
- However, by December 31, 2022, the DSO decreased to 67.77 days, showcasing some improvement in the collection efficiency.
- The trend continued to improve as of December 31, 2023, with the DSO declining further to 54.18 days, indicating that the company was collecting payments more quickly.
- The most recent data point as of December 31, 2024, shows a DSO of 51.73 days, reflecting a continued enhancement in the company's ability to convert sales into cash.

Overall, the declining trend in the DSO ratio over the years suggests that Zurn Elkay Water Solutions Corporation has been managing its accounts receivables efficiently, collecting payments from customers in a timelier manner. This trend may indicate improved liquidity, better credit control, or more effective collection strategies within the company.