Fortive Corp (FTV)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.62 | 6.17 | 5.96 | 5.44 | 5.56 | |
| DSO | days | 55.16 | 59.20 | 61.28 | 67.10 | 65.66 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.62
= 55.16
Based on the data provided, Fortive Corp's Days Sales Outstanding (DSO) has seen a gradual decrease over the years, indicating an improvement in the company's ability to collect its accounts receivable efficiently.
The DSO decreased from 65.66 days as of December 31, 2020, to 55.16 days as of December 31, 2024. This downward trend suggests that Fortive Corp has been successful in managing its credit policies and collecting payments from customers faster.
A lower DSO generally implies that the company is converting its sales into cash more quickly, which can positively impact cash flow and working capital management. It also indicates that the company may have effective credit control measures in place, leading to improved liquidity and reduced credit risk.
Overall, the decreasing trend in Fortive Corp's DSO indicates a positive development in the company's accounts receivable management, which can contribute to its financial health and operational efficiency.
Peer comparison
Dec 31, 2024