Eaton Corporation PLC (ETN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.16 | 5.04 | 6.10 | 6.20 | 6.18 | |
| DSO | days | 70.69 | 72.35 | 59.83 | 58.86 | 59.09 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.16
= 70.69
The Days of Sales Outstanding (DSO) for Eaton Corporation plc over the past five years indicate the average number of days it takes for the company to collect its accounts receivable. The trend in DSO shows an increase from 58.65 days in 2019 to 70.42 days in 2023. This suggests a lengthening in the collection period over the years.
A higher DSO could imply that the company is facing challenges in collecting payments from its customers promptly, which may impact its liquidity and cash flow. It is essential for Eaton Corporation plc to monitor and manage its receivables effectively to ensure timely collections and maintain healthy working capital levels.
Further analysis, including comparison with industry benchmarks and an assessment of the company's credit policies and customer base, would provide a more in-depth insight into the effectiveness of Eaton Corporation plc's accounts receivable management.
Peer comparison
Dec 31, 2023