ESCO Technologies Inc (ESE)
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 | 4.20 | 4.63 | 5.22 | 4.93 | 4.77 | 4.85 | 4.99 | 5.51 | 5.18 | 4.76 | 5.45 | 5.36 | 4.88 | 5.30 | 5.68 | 5.02 | 5.05 | 5.48 | 4.99 | 4.96 | |
| DSO | days | 86.84 | 78.80 | 69.98 | 73.98 | 76.52 | 75.28 | 73.07 | 66.21 | 70.48 | 76.73 | 66.97 | 68.12 | 74.79 | 68.84 | 64.24 | 72.76 | 72.27 | 66.64 | 73.22 | 73.54 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.20
= 86.84
Days Sales Outstanding (DSO) is a measure that indicates the average number of days it takes a company to collect revenue after a sale is made. A higher DSO value suggests that the company is taking longer to collect payments from its customers, which could potentially indicate issues with credit policies, collection processes, or customer financial health.
Analyzing ESCO Technologies Inc's DSO over the past few quarters, we observe fluctuations in the metric. The DSO has ranged from a high of 86.84 days in September 2024 to a low of 64.24 days in March 2021. This variability may indicate changes in the company's sales practices, customer payment behavior, or credit management strategies.
The trend of ESCO Technologies Inc's DSO over time is worth noting. In recent quarters, there seems to have been an uptick in the DSO, with the metric increasing from 66.21 days in December 2022 to 86.84 days in September 2024. This trend suggests that the company may be experiencing challenges in collecting payments from customers on time, which could impact its cash flow and working capital management.
It would be beneficial for ESCO Technologies Inc to delve deeper into the reasons behind the increasing DSO trend. By identifying and addressing the root causes of delayed payments, the company can improve its cash conversion cycle, strengthen its liquidity position, and enhance overall financial performance. Additionally, monitoring DSO regularly and implementing effective credit and collection strategies can help mitigate risks associated with outstanding receivables and optimize cash flow management.
Peer comparison
Sep 30, 2024