Eaton Corporation PLC (ETN)
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 | 5.16 | 5.05 | 4.97 | 5.00 | 5.04 | 5.23 | 5.27 | 5.55 | 6.10 | 5.93 | 5.74 | 5.80 | 6.20 | 6.42 | 7.24 | 7.04 | 6.18 | 5.64 | 5.45 | 6.97 | |
| DSO | days | 70.69 | 72.34 | 73.42 | 73.06 | 72.35 | 69.75 | 69.27 | 65.77 | 59.83 | 61.56 | 63.58 | 62.94 | 58.86 | 56.82 | 50.42 | 51.84 | 59.09 | 64.67 | 66.97 | 52.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.16
= 70.69
To analyze Eaton Corporation plc's Days Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuation in the metric. In Q4 2023, the DSO was 70.42 days, slightly lower compared to the previous quarter's 71.99 days in Q3 2023. This suggests the company was able to collect its accounts receivable more efficiently in the most recent quarter.
Looking back further, the trend shows a variation in DSO levels throughout the quarters. Q2 and Q1 of 2023 saw higher DSO figures of 72.83 days and 72.33 days, respectively. However, the DSO improved from Q4 2022 to Q1 2023 before increasing again in Q2 2023.
Comparing the current DSO figures to the same period in the previous year, we note an increase from 69.07 days in Q3 2022 to 71.69 days in Q4 2022. This was followed by a decrease in Q1 2023, suggesting potential inefficiencies in collections during the prior quarter.
In conclusion, monitoring Eaton Corporation plc's DSO trend reveals fluctuations in accounts receivable collection efficiency over the quarters. It would be beneficial for the company to further analyze the reasons behind these variations and potentially implement strategies to optimize their collections process.
Peer comparison
Dec 31, 2023
See also:
Eaton Corporation PLC Average Receivable Collection Period (Quarterly Data)