Applied Industrial Technologies (AIT)
Days of sales outstanding (DSO)
| Jun 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.18 | 6.29 | 6.75 | 6.37 | 6.19 | 6.08 | 6.32 | 5.87 | 5.77 | 5.85 | 6.68 | 6.31 | 6.20 | 5.94 | 6.81 | 6.94 | 7.14 | 6.43 | 6.80 | 6.47 | |
| DSO | days | 59.09 | 58.01 | 54.08 | 57.31 | 58.93 | 60.03 | 57.72 | 62.21 | 63.31 | 62.37 | 54.61 | 57.86 | 58.83 | 61.41 | 53.63 | 52.56 | 51.14 | 56.80 | 53.71 | 56.41 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.18
= 59.09
The Days Sales Outstanding (DSO) ratio for Applied Industrial Technologies has fluctuated over the past several quarters. The trend shows a slight increase in DSO from the end of 2019 to the middle of 2022, reaching a peak of 63.31 days in June 2022. However, there was a noticeable decrease in DSO in the second half of 2022 and the beginning of 2023, with the lowest DSO of 51.14 days recorded in March 2023.
Since then, the DSO has shown some volatility but generally remained within the range of 50 to 60 days, indicating that the company collects its accounts receivable within a reasonable time frame. The overall trend suggests that Applied Industrial Technologies has been effectively managing its accounts receivable and improving its collection efficiency in recent quarters.
It is important for the company to continuously monitor and manage its DSO to ensure timely collection of outstanding receivables, which can help improve cash flow and working capital management. Additionally, a stable or decreasing DSO ratio can also indicate strong customer relationships and effective credit and collection policies.