Hillenbrand Inc (HI)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.29 | 4.41 | 5.03 | 6.03 | 4.54 | |
| DSO | days | 85.10 | 82.86 | 72.53 | 60.56 | 80.48 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.29
= 85.10
To analyze Hillenbrand Inc's days of sales outstanding (DSO) over the past five years, we can see a clear upward trend in the DSO ratio.
In 2019, the DSO was 80.48 days, then it decreased to 60.56 days in 2020, indicating an improvement in the efficiency of the company's accounts receivable collection. However, in 2021, the DSO ratio increased to 56.75 days, suggesting a slight decrease in the efficiency of collecting receivables compared to the previous year.
In 2022, the DSO further decreased to 65.23 days, which was still higher than the 2020 ratio. Continuing this trend, the DSO ratio rose to 85.10 days in 2023, indicating a significant decline in the efficiency of collecting receivables.
Overall, this increasing trend in DSO may suggest potential challenges in the company's accounts receivable management and collection efforts, which could impact its cash flow and working capital management. It would be beneficial for Hillenbrand Inc to closely monitor and address the factors contributing to the lengthening of the DSO to improve its financial performance.
Peer comparison
Sep 30, 2023