Allegion PLC (ALLE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.43 | 8.05 | 9.96 | 8.29 | 8.38 | |
| DSO | days | 43.31 | 45.32 | 36.66 | 44.02 | 43.56 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.43
= 43.31
Allegion plc's Days Sales Outstanding (DSO) has shown some variability over the past five years. In 2023, the DSO decreased to 41.27 days from 44.13 days in 2022, indicating a more efficient collection of accounts receivable. This suggests that Allegion plc was able to convert its sales into cash more quickly in 2023 compared to the previous year.
Comparing the 2023 DSO to prior years, it is higher than the 36.06 days reported in 2021 but lower than the 43.18 days in 2020 and 42.18 days in 2019. This indicates that Allegion plc's accounts receivable turnover improved in 2023 relative to 2020 and 2019, but was not as strong as in 2021.
Overall, the decreasing trend in DSO from 2020 to 2023 reflects improved efficiency in collecting outstanding receivables, which is a positive indicator of Allegion plc's liquidity management and financial performance. However, ongoing monitoring of DSO trends is recommended to ensure effective management of accounts receivable going forward.