Zurn Elkay Water Solutions Corporation (ZWS)
Days of sales outstanding (DSO)
| Sep 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.26 | 6.65 | 6.74 | 6.32 | 6.17 | 6.05 | 5.39 | 3.88 | 6.11 | 7.79 | 10.35 | 6.15 | 5.92 | 6.50 | 6.83 | 7.39 | 6.18 | 7.08 | 6.92 | 6.76 | |
| DSO | days | 58.26 | 54.89 | 54.18 | 57.79 | 59.12 | 60.38 | 67.76 | 93.96 | 59.74 | 46.84 | 35.25 | 59.37 | 61.66 | 56.19 | 53.40 | 49.38 | 59.07 | 51.55 | 52.77 | 53.98 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.26
= 58.26
The Days Sales Outstanding (DSO) ratio measures the average number of days a company takes to collect revenue after a sale has been made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally considered favorable.
Analyzing the DSO trend for Zurn Elkay Water Solutions Corporation over the past few quarters, we can observe fluctuations in the collection period. In the most recent period ending in September 2024, the DSO was 58.26 days, representing a slight increase compared to the previous quarter. Despite this increase, the DSO remains in line with historical levels.
Looking back over the past year, there was a significant increase in DSO in the fourth quarter of 2022, with a value of 67.76 days. This spike was followed by a decreasing trend in the subsequent quarters, indicating improved efficiency in collecting accounts receivable. The lowest DSO value was recorded in the first quarter of 2022 at 35.25 days, highlighting a substantial improvement in collections.
Overall, although there have been fluctuations in DSO, the company has demonstrated the ability to manage its accounts receivable effectively. It is essential for Zurn Elkay Water Solutions Corporation to maintain focus on timely collections to ensure healthy cash flow and working capital management.
Peer comparison
Sep 30, 2024