Ingersoll Rand Inc (IR)

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 5.42 5.33 5.41 5.55 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
DSO days 67.37 68.44 67.51 65.71 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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.42
= 67.37

The days of sales outstanding (DSO) of Ingersoll Rand Inc has shown a declining trend over the past few years, indicating an improvement in the company's ability to collect its accounts receivable efficiently. As of December 31, 2024, the DSO stood at 67.37 days, reflecting a relatively quick conversion of accounts receivable into cash.

The decreasing trend in DSO from 178.53 days on March 31, 2020, to 67.37 days on December 31, 2024, suggests that the company has been successful in managing its credit and collection processes effectively. A lower DSO indicates that Ingersoll Rand Inc is collecting payments from customers at a faster rate, which may improve the company's cash flow and overall liquidity position.

It is essential to monitor the DSO metric continually to ensure that the company maintains efficient accounts receivable management practices. A sustained low DSO level could indicate a healthy working capital management strategy, enhancing the company's financial stability and operational performance.