Itron Inc (ITRI)

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 6.97 7.07 7.40 6.70 7.14 6.47 6.02 5.93 6.38 6.65 7.08 6.21 6.43 6.18 6.03 5.60 5.76 5.80 5.65 5.28
DSO days 52.38 51.59 49.30 54.48 51.14 56.41 60.64 61.55 57.21 54.92 51.58 58.80 56.78 59.09 60.50 65.13 63.39 62.97 64.55 69.11

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.97
= 52.38

Days of Sales Outstanding (DSO) is an important financial ratio that measures the average number of days it takes for a company to collect its accounts receivable. In the case of Itron Inc, the DSO has shown a downward trend from 69.11 days as of March 31, 2020, to 52.38 days as of December 31, 2024. This indicates that the company has been able to more efficiently collect its receivables over the years.

The decreasing trend in DSO suggests that Itron Inc has improved its credit and collection policies, resulting in faster cash conversion from sales. A lower DSO also reflects effective management of accounts receivable and a healthier cash flow position. It is essential for a company to maintain an optimal DSO to ensure a balance between timely collection of receivables and maintaining good customer relationships.

Overall, the declining trend of DSO for Itron Inc is a positive indicator of the company's efficient accounts receivable management and liquidity position. It shows improved effectiveness in collecting payments from customers, which can positively impact the company's financial performance and working capital management.