ESCO Technologies Inc (ESE)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.20 | 4.77 | 5.18 | 4.89 | 5.06 | |
| DSO | days | 86.85 | 76.52 | 70.48 | 74.69 | 72.14 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.20
= 86.85
ESCO Technologies Inc's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. DSO measures the average number of days it takes for a company to collect payment after making a sale.
In 2024, the DSO stood at 86.85 days, indicating a slight increase compared to the previous year's 76.52 days. This rise may suggest challenges in collecting receivables efficiently, possibly impacting cash flow management.
Looking back, the company witnessed a decrease in DSO from 2022 to 2023, demonstrating improved collection efficiency. However, in 2021, there was a slight uptick in DSO to 74.69 days, compared to 72.14 days in 2020.
Overall, ESCO Technologies Inc should monitor its DSO closely to ensure timely collection of receivables and efficient cash flow management. fluctuations in DSO may indicate underlying operational or customer credit issues that warrant attention to maintain financial health and liquidity.
Peer comparison
Sep 30, 2024