Carrier Global Corp (CARR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Receivables turnover | 8.65 | 7.76 | 8.44 | 6.57 | |
| DSO | days | 42.20 | 47.07 | 43.22 | 55.53 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.65
= 42.20
To analyze Carrier Global Corp's Days of Sales Outstanding (DSO) over the past five years, we observe a trend of fluctuation in the efficiency of the company in collecting accounts receivable.
In the most recent year, as of December 31, 2023, the DSO stands at 40.98 days, showing an improvement compared to the previous year's 50.64 days. This suggests that the company has been more effective in converting its accounts receivable into cash within a shorter period.
Looking back further, in 2021, the DSO was 42.55 days, indicating a relatively stable performance in collecting receivables. In contrast, in 2020 and 2019, the DSO was notably higher at 58.15 days and 53.47 days, respectively, signaling that the company took longer to collect payments in those years.
Overall, the trend indicates that Carrier Global Corp's collection efficiency has shown variability over the years. A lower DSO is generally favorable as it signifies prompt collection of receivables and efficient working capital management. However, it is essential to monitor the DSO in conjunction with other financial metrics to gain a holistic understanding of the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2023