Huntington Ingalls Industries Inc (HII)
Days of sales outstanding (DSO)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 27.73 | 19.22 | 13.04 | 13.50 | 17.79 | 12.63 | 11.24 | 12.41 | 13.25 | 11.70 | 12.67 | 11.67 | 14.83 | 14.40 | 16.40 | 17.36 | 16.48 | 13.76 | 14.92 | 17.27 | |
| DSO | days | 13.16 | 18.99 | 27.99 | 27.03 | 20.52 | 28.90 | 32.48 | 29.41 | 27.56 | 31.20 | 28.80 | 31.29 | 24.60 | 25.35 | 22.25 | 21.02 | 22.15 | 26.52 | 24.47 | 21.14 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.73
= 13.16
The Days of Sales Outstanding (DSO) of Huntington Ingalls Industries Inc has fluctuated over the periods presented in the data. DSO represents the average number of days it takes for the company to collect payment from its customers after making a sale.
From March 31, 2020, to December 31, 2024, the DSO ranged from a low of 13.16 days to a high of 31.29 days. A lower DSO indicates that the company is able to collect payments from customers more quickly, which can be a positive indicator of efficient accounts receivable management.
In analyzing the trend, we observe that the DSO generally increased from 2020 to 2022, reaching a peak in March 31, 2022, before slightly declining in the subsequent periods. The decrease in DSO from the peak in March 31, 2022, to December 31, 2024, could suggest improvements in the company's accounts receivable collection process.
It is essential for companies to effectively manage their DSO to ensure a healthy cash flow and timely collection of outstanding receivables. Further monitoring of the DSO trend and understanding the factors influencing the changes will provide valuable insights into Huntington Ingalls Industries Inc's financial performance and liquidity management.
Peer comparison
Dec 31, 2024