Huntington Ingalls Industries Inc (HII)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 27.73 | 17.79 | 13.25 | 14.83 | 16.48 | |
| DSO | days | 13.16 | 20.52 | 27.56 | 24.60 | 22.15 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.73
= 13.16
The days of sales outstanding (DSO) for Huntington Ingalls Industries Inc have displayed a fluctuating trend over the past five years.
As of December 31, 2020, the DSO stood at 22.15 days, indicating that on average, it took the company about 22 days to collect payments from its customers.
By December 31, 2021, the DSO increased to 24.60 days, suggesting a slight inefficiency in the company's collection process as it took longer to turn its accounts receivable into cash.
The DSO extended further to 27.56 days by December 31, 2022, signaling a potential deterioration in the company's accounts receivable management, as it took even longer to collect payments from customers.
However, by December 31, 2023, the DSO decreased significantly to 20.52 days, indicating an improvement in the company's collection efforts. The reduced DSO may signify more efficient credit and collection policies or better customer payment behaviors.
Finally, as of December 31, 2024, the DSO dropped to 13.16 days, reaching its lowest point in the past five years. This sharp decline implies a commendable enhancement in the company's accounts receivable management, indicating faster collection of payments from customers.
In summary, Huntington Ingalls Industries Inc's DSO has shown variability over the years, with fluctuations reflecting changes in the efficiency of the company's accounts receivable collection process.
Peer comparison
Dec 31, 2024