Aecom Technology Corporation (ACM)
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 | 4.79 | 4.68 | 4.54 | 4.58 | 4.41 | 4.54 | 4.38 | 4.39 | 4.21 | 4.13 | 4.17 | 3.96 | 3.82 | 3.86 | 3.82 | 4.53 | 4.67 | 3.88 | 4.52 | 5.24 | |
| DSO | days | 76.26 | 78.07 | 80.42 | 79.78 | 82.70 | 80.43 | 83.42 | 83.09 | 86.64 | 88.32 | 87.46 | 92.15 | 95.56 | 94.44 | 95.56 | 80.64 | 78.16 | 94.10 | 80.78 | 69.64 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.79
= 76.26
Days Sales Outstanding (DSO) is a crucial metric that reflects the average number of days it takes for a company to collect payment after making a sale. In the case of AECOM, analyzing the trend of DSO over the past eight quarters gives insights into their receivables management and potential cash flow performance.
A decreasing trend in DSO, as seen from Q1 2023 to Q1 2024, indicates that AECOM has been collecting payments more efficiently over time. This suggests a stronger ability to convert sales into cash, improving liquidity and potentially reducing the risk of bad debts.
However, it is essential to note that despite the overall decreasing trend, there have been fluctuations in DSO values between quarters. For instance, there was a significant increase in DSO from Q1 2023 to Q2 2023, followed by a gradual decline in subsequent quarters.
Such fluctuations may be influenced by various factors such as seasonal variations in sales, changes in customer payment behavior, or the impact of specific projects on receivables management. Monitoring these fluctuations and understanding the underlying drivers is crucial for AECOM to maintain effective working capital management and optimize cash flow.
Overall, AECOM's decreasing trend in DSO suggests an improvement in their receivables management efficiency, but the company should continue to assess and address fluctuations to ensure sustainable cash flow and financial health.
Peer comparison
Dec 31, 2023