Honeywell International Inc (HON)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.87 | 4.76 | 5.03 | 4.79 | 4.93 | |
| DSO | days | 75.02 | 76.72 | 72.59 | 76.25 | 74.11 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.87
= 75.02
The Days of Sales Outstanding (DSO) for Honeywell International Inc have shown fluctuations over the past five years. In 2023, the DSO decreased to 74.97 days from 76.57 days in 2022, indicating an improvement in the company's ability to collect its accounts receivable efficiently. This decrease suggests that Honeywell is collecting payments from its customers more quickly.
Comparing the DSO to previous years, we can see that it is lower than the levels seen in 2020 and 2022, which were 76.35 days and 76.57 days, respectively. This trend indicates that Honeywell has been more effective in managing its accounts receivable turnover in recent years.
However, despite the improvement in 2023, the DSO remains slightly higher than the levels seen in 2021 and 2019, when it was 72.49 days and 74.50 days, respectively. This implies that there may still be room for further optimization in the company's accounts receivable collection process.
Overall, the decreasing trend in DSO over the past two years is a positive indicator of Honeywell's efficiency in managing its working capital and collecting payments from customers in a timely manner. Continued focus on maintaining or further reducing DSO levels can contribute to improved cash flow and financial performance for the company.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Average Receivable Collection Period