Ecolab Inc (ECL)

Days of sales outstanding (DSO)

		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	Jun 30, 2019	Mar 31, 2019
Receivables turnover		5.11	5.03	4.98	5.10	4.98	4.88	4.84	4.98	4.89	4.94	4.88	4.75	5.06	5.23	5.85	4.97	5.07	5.14	5.06	5.17
DSO	days	71.37	72.56	73.34	71.60	73.29	74.84	75.46	73.33	74.66	73.90	74.83	76.81	72.15	69.74	62.43	73.49	72.05	71.05	72.10	70.64

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.11
= 71.37

Ecolab, Inc.'s Days Sales Outstanding (DSO) has shown a decreasing trend over the past four quarters, indicating that the company is collecting its accounts receivable more efficiently. In Q4 2023, the DSO decreased to 71.98 days from 73.18 days in the previous quarter. This improvement is consistent with the gradual reduction observed since Q2 2022 when the DSO was 76.24 days.

Overall, the declining DSO trend suggests that Ecolab is managing its accounts receivable effectively, possibly through more rigorous credit policies, improved collection processes, or a focus on working capital management. By collecting receivables faster, the company may be enhancing its cash flow and liquidity position, which can be beneficial for its overall financial health and operational efficiency.