Jacobs Solutions Inc. (J)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.10 | 6.74 | 4.43 | 4.59 | 4.27 | |
| DSO | days | 88.95 | 54.18 | 82.39 | 79.49 | 85.52 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.10
= 88.95
To analyze Jacobs Solutions Inc.'s Days of Sales Outstanding (DSO) trend, we observe that the DSO figures have fluctuated over the past five years.
In 2024, the DSO is 88.95 days, which is significantly higher compared to the previous year's figure of 54.18 days. This increase indicates that Jacobs Solutions Inc. is taking longer to convert its accounts receivable into cash, which might signify potential issues with collection efficiency or extending credit terms to customers.
Looking back at 2023, Jacobs Solutions Inc. had a relatively low DSO of 54.18 days, reflecting a strong ability to collect payments from customers promptly. However, in 2022 and 2021, the DSO figures were 82.39 days and 79.49 days, respectively, indicating a slightly longer collection period compared to 2023 but still better than in 2024.
The DSO in 2020 was 85.52 days, showing a similar trend to 2024 where collections took longer, but the increase in 2024 seems more pronounced.
Overall, Jacobs Solutions Inc. may need to review its credit policies and collection procedures to streamline its accounts receivable process and improve cash flow efficiency, especially compared to the lower DSO figures exhibited in 2023 and earlier years.
Peer comparison
Sep 30, 2024