Emerson Electric Company (EMR)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.05 | 5.15 | 4.82 | 4.70 | 4.92 | 5.42 | 6.24 | 6.75 | 5.72 | 5.60 | 6.39 | 6.77 | 6.15 | 6.49 | 6.21 | 6.33 | 5.99 | 6.85 | 6.80 | 6.74 | |
| DSO | days | 72.32 | 70.90 | 75.70 | 77.60 | 74.26 | 67.39 | 58.46 | 54.05 | 63.85 | 65.15 | 57.10 | 53.93 | 59.36 | 56.23 | 58.80 | 57.64 | 60.93 | 53.31 | 53.65 | 54.15 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.05
= 72.32
Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes a company to collect payment after a sale has been made. A lower DSO indicates that a company is able to collect payments more quickly, which is generally viewed favorably.
Analyzing the DSO trend for Emerson Electric Company over the past few quarters, we observe fluctuations in the collection period. The DSO has ranged from a low of 53.31 days in September 2020 to a high of 77.60 days in December 2023. This variability suggests potential changes in the company's collection efficiency.
In general, a decreasing trend in DSO over time is positive as it indicates faster collection of accounts receivable. In this case, we see that the DSO has shown a decreasing trend from December 2023 to September 2024, dropping from 77.60 days to 72.32 days. This suggests that Emerson Electric may have improved its receivables management and collection processes during this period.
However, it is important to note that the DSO can be influenced by various factors such as industry norms, customer payment behavior, and the company's credit policies. Therefore, a comprehensive analysis considering these factors would provide a more accurate assessment of Emerson Electric's efficiency in collecting receivables.
Peer comparison
Sep 30, 2024
See also:
Emerson Electric Company Average Receivable Collection Period (Quarterly Data)