Cummins Inc (CMI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 281.83 | 420.56 | 61.16 | 45.67 | 4.96 | |
| DSO | days | 1.30 | 0.87 | 5.97 | 7.99 | 73.55 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 281.83
= 1.30
Cummins Inc's days of sales outstanding (DSO) have shown a steady declining trend over the years, indicating an improvement in the company's ability to collect its accounts receivable efficiently. Starting at 73.55 days on December 31, 2020, the DSO decreased significantly to 7.99 days by December 31, 2021, and continued to decrease to 5.97 days by December 31, 2022. The trend persisted as the DSO further dropped to 0.87 days by December 31, 2023, before experiencing a slight increase to 1.30 days by December 31, 2024. This reduction in DSO reflects a more effective management of the company's receivables, potentially leading to improved cash flows and liquidity.
Peer comparison
Dec 31, 2024