Cummins Inc (CMI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 420.56 | 61.16 | 45.67 | 4.96 | 6.10 | |
| DSO | days | 0.87 | 5.97 | 7.99 | 73.55 | 59.79 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 420.56
= 0.87
The days of sales outstanding (DSO) of Cummins Inc. have shown fluctuating trends over the past five years. In 2023, the DSO decreased to 59.82 days from 67.63 days in 2022, indicating an improvement in the company's ability to collect receivables efficiently. This reduction may suggest more effective credit management or prompt collection practices by Cummins Inc.
Comparing to the prior years, in 2021, the DSO was 60.63 days, slightly lower than in 2022. The DSO was relatively higher in 2020 at 70.38 days, showing a longer collection period. However, in 2019, the DSO was 56.83 days, the lowest among the given years, indicating a quick turnover of accounts receivable.
Overall, while there have been fluctuations in the DSO for Cummins Inc. over the years, the recent decrease in 2023 suggests an improved liquidity position and more efficient management of accounts receivable.
Peer comparison
Dec 31, 2023