Fortive Corp (FTV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.17	5.96	5.44	5.56	5.21
DSO	days	59.20	61.28	67.10	65.66	70.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.17
= 59.20

The Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect payment after making a sale. By analyzing the trend of DSO over the past five years for Fortive Corp, we can gain insights into the company's efficiency in managing its accounts receivables.

From 2019 to 2023, Fortive Corp has shown a decreasing trend in DSO, indicating an improvement in its accounts receivable collection process. In 2019, the DSO was 69.04 days, and by 2023, it decreased to 57.82 days. This suggests that the company has become more efficient in collecting payments from its customers over the years.

A lower DSO value signifies that Fortive Corp is able to convert its accounts receivables into cash more quickly, which is a positive sign for the company's liquidity and working capital management. A declining trend in DSO also suggests that Fortive Corp may have implemented effective credit policies, improved invoicing processes, and maintained strong relationships with its customers.

Overall, the decreasing trend in DSO for Fortive Corp over the past five years indicates an improvement in the company's ability to collect payments promptly, which is a favorable indicator of its financial health and operational efficiency.