Industry Profiles

Aerospace & Defense DSO Benchmarks

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Lockheed Martin photo
C-130J Super Hercules transport planes slated for delivery to India are on the Lockheed Martin assembly line in Marietta, Georgia.

Credit risk and receivables effeciency remain stable but debt continues to climb, particularly among the major European defense contractors, in the government-supported aerospace & defense industry.

Days' sales outstanding, or DSO, the most important method for measuring receivables effeciency and collections performance, remained remarkably stable in 2014 from the 2013 figure, falling just 0.23 days, according to the latest industry data compiled by CreditPulse.  Meanwhile, bad debt allowance (BDA) fell for the third consecutive year in an industry that generates much of its sales from government contracts. 

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