L3Harris Technologies Inc (LHX)

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	Sep 30, 2019
Receivables turnover		15.04	16.33	16.19	2.40	2.13	2.73	2.70	2.83	2.80	—	—	2.98	—	—	16.27	13.33	15.90	13.38	9.91	7.63
DSO	days	24.26	22.35	22.55	152.14	171.13	133.65	135.16	128.76	130.23	—	—	122.59	—	—	22.43	27.39	22.96	27.28	36.83	47.84

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.04
= 24.26

The Days Sales Outstanding (DSO) ratio is a key metric used to assess how efficiently a company collects its accounts receivable. A lower DSO indicates faster cash collection and better liquidity management.

Analyzing the DSO trend for L3Harris Technologies Inc over the given periods, we observe fluctuations in the metric:

- As of September 30, 2024, the DSO stands at 24.26 days, showing an improvement compared to the previous quarter.
- The DSO for Jun 30, 2024, and Mar 31, 2024, were 22.35 days and 22.55 days, respectively, indicating consistent and efficient collection of accounts receivable.
- However, a significant increase in DSO was noted on December 31, 2023, where it spiked to 152.14 days, which may suggest delays in collecting payments during that period.
- The DSO for September 30, 2023, June 30, 2023, and March 31, 2023, also showed elevated figures, indicating potential challenges in timely collection.
- Notably, there were missing data points for some quarters, impacting the overall trend analysis. For example, there are missing values for DSO in some quarters of 2022 and 2021.
- The DSO improved to 22.43 days as of March 31, 2021, suggesting enhanced efficiency in collecting receivables compared to the preceding quarter.
- The DSO for December 31, 2020, and September 30, 2020, were above 25 days, indicating a longer time taken to collect receivables during those periods.
- A positive trend was visible in the decreasing DSO from December 31, 2020, to March 31, 2021, showcasing an improvement in accounts receivable management.

In conclusion, L3Harris Technologies Inc has shown varying levels of efficiency in collecting accounts receivable over the analyzed periods, with efforts to reduce DSO seen in some quarters. However, the company should continue monitoring and improving its accounts receivable management to maintain healthy cash flows and liquidity.