Honeywell International Inc (HON)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.87 | 4.64 | 4.51 | 4.56 | 4.76 | 4.74 | 4.45 | 4.81 | 5.03 | 4.78 | 4.91 | 4.94 | 4.88 | 4.93 | 5.25 | 4.96 | 4.94 | 4.91 | 5.23 | 7.06 | |
| DSO | days | 75.02 | 78.65 | 80.88 | 79.98 | 76.72 | 77.05 | 82.08 | 75.82 | 72.59 | 76.34 | 74.41 | 73.87 | 74.85 | 74.09 | 69.54 | 73.63 | 73.86 | 74.28 | 69.74 | 51.71 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.87
= 75.02
The Days of Sales Outstanding (DSO) is a metric used to measure how many days, on average, it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly, which is generally seen as a positive sign of efficient cash management.
Analyzing the DSO trend for Honeywell International Inc over the past eight quarters, we observe some fluctuations. In Q4 2023, the DSO was 74.97 days, which decreased compared to the previous quarter. This suggests that the company may have improved its accounts receivable collection efficiency during this period.
Looking at the longer-term trend, we see that the DSO has generally varied between 75 to 80 days over the past two years. While there have been fluctuations from quarter to quarter, there is no clear upward or downward trend in the overall DSO figure.
It is important for a company like Honeywell International Inc to monitor and manage its DSO effectively, as a high DSO can indicate potential liquidity issues or difficulties in collecting receivables. By improving collection processes and maintaining a consistent DSO level, the company can enhance its cash flow and overall financial health.
Peer comparison
Dec 31, 2023
See also:
Honeywell International Inc Average Receivable Collection Period (Quarterly Data)