Johnson Controls International PLC (JCI)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.73 | 4.08 | 4.03 | 4.43 | 4.42 | 4.01 | 4.31 | 4.42 | 4.35 | 4.24 | 4.31 | 4.27 | 4.10 | 4.05 | 4.27 | 4.20 | 3.99 | 4.19 | 4.27 | 4.25 | |
| DSO | days | 97.92 | 89.47 | 90.61 | 82.32 | 82.56 | 90.93 | 84.75 | 82.54 | 83.83 | 86.07 | 84.65 | 85.57 | 89.08 | 90.11 | 85.57 | 86.81 | 91.56 | 87.15 | 85.57 | 85.93 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.73
= 97.92
Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. It measures the average number of days it takes for a company to collect payment from its customers after a sale has been made.
Analyzing Johnson Controls International PLC's DSO over the past few quarters, we can see a fluctuating trend. DSO has ranged from a low of 82.32 days in December 2023 to a high of 97.92 days in September 2024. Generally, a lower DSO indicates a faster collection of receivables and better liquidity, while a higher DSO suggests slower collections and potential cash flow issues.
It is essential to monitor changes in DSO over time to assess the effectiveness of the company's credit and collection policies. Fluctuations in DSO may be influenced by seasonal factors, changes in customer payment behavior, or the company's credit terms.
In the case of Johnson Controls International PLC, a rising trend in DSO could indicate potential challenges in collecting accounts receivable efficiently, which may require management's attention to improve cash flow and working capital management. Conversely, a decreasing trend in DSO reflects improved efficiency in collecting payments from customers, leading to stronger cash flow positions.
Overall, a detailed analysis of DSO should be accompanied by an assessment of other financial metrics to provide a comprehensive understanding of Johnson Controls International PLC's financial performance and working capital management.
Peer comparison
Sep 30, 2024
See also:
Johnson Controls International PLC Average Receivable Collection Period (Quarterly Data)