Itron Inc (ITRI)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 6.97 7.13 6.38 6.31 5.60
DSO days 52.40 51.16 57.24 57.89 65.14

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.97
= 52.40

Itron Inc's Days Sales Outstanding (DSO) has shown a consistent downward trend over the past five years, decreasing from 65.14 days as of December 31, 2020, to 52.40 days as of December 31, 2024. This indicates an improvement in the company's efficiency in collecting its accounts receivable. A lower DSO implies that Itron Inc is able to convert its accounts receivable into cash more quickly, which is a positive sign of effective credit management and liquidity. The decreasing trend in DSO suggests that Itron Inc has been successful in managing its working capital efficiently and maintaining strong customer payment terms. Overall, the decreasing trend in DSO reflects positively on the company's financial health and operational effectiveness.