Ingersoll Rand Inc (IR)
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 | 5.57 | 5.49 | 5.29 | 4.99 | 5.27 | 5.53 | 5.42 | 5.29 | 5.43 | 5.34 | 5.06 | 4.59 | 4.20 | 3.22 | 2.71 | 2.04 | 4.39 | 5.58 | 5.32 | 5.28 | |
| DSO | days | 65.51 | 66.46 | 68.97 | 73.11 | 69.22 | 65.97 | 67.34 | 69.04 | 67.20 | 68.33 | 72.07 | 79.58 | 86.90 | 113.23 | 134.80 | 178.53 | 83.06 | 65.39 | 68.64 | 69.17 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.57
= 65.51
The Days Sales Outstanding (DSO) for Ingersoll-Rand Inc has shown a fluctuating trend over the past eight quarters. In Q1 2022, the DSO was 72.29 days, which then decreased to 70.40 days in Q2 2022 before further dropping to 68.87 days in Q3 2022. However, in Q4 2022, there was a slight increase to 69.22 days.
The upward trend began in Q1 2023, where the DSO increased to 73.11 days, followed by 68.97 days in Q2 2023, 66.46 days in Q3 2023, and 65.51 days in Q4 2023.
This fluctuation can indicate changes in the efficiency of the company's accounts receivable management. A decreasing DSO suggests faster collections from customers, which can improve cash flow and liquidity. On the other hand, an increasing DSO may signal potential issues with collecting receivables promptly, leading to cash flow challenges.
It is important for Ingersoll-Rand Inc to closely monitor and manage its DSO to ensure timely collection of accounts receivable and maintain healthy cash flow levels.
Peer comparison
Dec 31, 2023