Applied Industrial Technologies (AIT)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.18 | 6.19 | 5.77 | 6.20 | 7.14 | |
| DSO | days | 59.09 | 58.93 | 63.31 | 58.83 | 51.12 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.18
= 59.09
Based on the data provided, we can observe fluctuations in Applied Industrial Technologies' Days Sales Outstanding (DSO) over the past five years. DSO is a measure of the average number of days it takes for a company to collect revenue after a sale is made.
In 2024, the DSO was 59.09 days, compared to 58.93 days in 2023, indicating a relatively stable collection period. However, the DSO was higher in 2022 at 63.31 days, and lower in 2021 at 58.83 days. The lowest DSO was recorded in 2020 at 51.12 days, reflecting a more efficient collection process that year.
Overall, although there has been some variability in the DSO over the years, the company generally maintains a reasonable collection period. It is important for Applied Industrial Technologies to monitor and manage its DSO effectively to ensure efficient cash flow management and timely revenue collection.