Hillenbrand Inc (HI)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.88 | 4.29 | 4.41 | 5.03 | 6.03 | |
| DSO | days | 74.86 | 85.10 | 82.86 | 72.53 | 60.56 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.88
= 74.86
Hillenbrand Inc's Days of Sales Outstanding (DSO) measures how long it takes for the company to collect payment from customers after making a sale. The trend of DSO over the past five years shows fluctuations in the collection period.
In September 2024, the DSO was 74.86 days, a decrease from the prior year. This suggests that the company improved its collection efficiency, possibly through more effective credit management or faster invoicing processes.
Comparing to the DSO of 85.10 days in September 2023, the decrease in DSO in 2024 indicates a positive trend in collecting payments. This could be a result of tightened credit policies or enhanced collection efforts.
The DSO in September 2022 was 82.86 days, slightly higher than in the previous year. This increase may indicate a slowdown in collecting payments, requiring attention to expedite the cash conversion cycle.
In September 2021, the DSO was 72.53 days, and in September 2020, it was 60.56 days, both showing decreasing trends. Lower DSO values indicate better liquidity and cash flow management, enabling the company to convert sales into cash more efficiently.
Overall, the fluctuation in Hillenbrand Inc's DSO over the past five years indicates varying effectiveness in collecting receivables. It is essential for the company to focus on maintaining a balance between extending credit to customers and promptly collecting payments to ensure healthy cash flow and liquidity position.
Peer comparison
Sep 30, 2024