Itron Inc (ITRI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.13 | 6.38 | 6.31 | 5.60 | 5.18 | |
| DSO | days | 51.16 | 57.24 | 57.89 | 65.14 | 70.46 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.13
= 51.16
To analyze Itron Inc.'s days of sales outstanding (DSO), we observe a decreasing trend in DSO from 2023 to 2021, indicating an improvement in the company's efficiency in collecting accounts receivable. The DSO decreased from 57.01 days in 2022 to 54.98 days in 2021, suggesting that the company has been able to collect its outstanding sales more quickly.
Comparing the DSO to previous years, we note a notable improvement in 2021 compared to 2020, where the DSO was 62.11 days. This improvement may signify more effective credit and collection policies, better customer payment terms, or enhanced collection processes.
Further back in 2019, Itron Inc. had a DSO of 68.98 days, indicating a significant improvement in collection efficiency over the years. A decreasing DSO trend generally reflects a faster turnover of accounts receivable, which can positively impact the company's cash flow and overall liquidity position.
Overall, the declining trend in DSO for Itron Inc. indicates enhanced efficiency in managing accounts receivable and suggests a positive outlook for the company's cash flow management and working capital efficiency. However, it would be prudent to continue monitoring this metric to ensure sustained improvements in the future.
Peer comparison
Dec 31, 2023