Hillenbrand Inc (HI)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.88 | 4.57 | 4.48 | 4.60 | 4.29 | 4.45 | 3.99 | 4.03 | 4.41 | 3.67 | 4.08 | 4.74 | 5.03 | 6.71 | 6.14 | 5.67 | 6.03 | 4.98 | 4.47 | 3.57 | |
| DSO | days | 74.86 | 79.91 | 81.48 | 79.32 | 85.10 | 81.93 | 91.46 | 90.59 | 82.86 | 99.39 | 89.38 | 77.05 | 72.53 | 54.39 | 59.48 | 64.35 | 60.56 | 73.25 | 81.57 | 102.26 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.88
= 74.86
The Days Sales Outstanding (DSO) for Hillenbrand Inc has shown fluctuating trends over the past several quarters. DSO is a measure of how long it takes for a company to collect its accounts receivable. A higher DSO value typically indicates that the company is taking a longer time to collect payments from its customers, which can impact cash flow and working capital management.
Looking at the data provided, Hillenbrand Inc's DSO has ranged from a low of 54.39 days in Mar 31, 2021, to a high of 102.26 days in Jun 30, 2022. The DSO has shown some variability, but there seems to be an overall trend of improvement in recent quarters, with lower DSO values recorded in more recent periods.
A decreasing trend in DSO can indicate that the company is becoming more efficient in collecting payments from its customers, which can be a positive sign for its cash flow and financial health. Conversely, an increasing trend in DSO may raise concerns about the company's accounts receivable management and potential liquidity issues.
It is important for Hillenbrand Inc to closely monitor its DSO and work towards maintaining an optimal balance between credit sales and timely collections to ensure healthy cash flow and operational efficiency. The company may consider implementing strategies to improve its collection process and tighten credit policies to reduce DSO in the future.
Peer comparison
Sep 30, 2024