L3Harris Technologies Inc (LHX)

Days of sales outstanding (DSO)

		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	Jun 30, 2019
Receivables turnover		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	14.51
DSO	days	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	25.15

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.33
= 22.35

The days of sales outstanding (DSO) for L3Harris Technologies Inc have fluctuated over the past several quarters. The DSO for Jun 30, 2024 and Mar 31, 2024 were relatively stable at around 22 days, indicating a reasonably efficient collection of accounts receivable during these periods.

However, there was a significant spike in DSO as of Dec 31, 2023, reaching 152.14 days, which could be a cause for concern as it suggests a delay in collecting receivables. This high DSO figure was followed by another elevated DSO of 171.13 days as of Sep 30, 2023.

In contrast, the DSO figures for the earlier quarters in 2023 were more moderate, ranging from 128.76 days to 135.16 days. The DSO for Jun 30, 2023 was at 133.65 days.

Looking further back, the DSO for Dec 31, 2022 was 130.23 days, while no data was available for the remaining quarters of 2022. In 2021, there was a DSO of 122.59 days as of Dec 31, and it gradually decreased to 22.43 days by Mar 31, 2021.

Generally, a lower DSO is favorable as it indicates that the company is collecting its accounts receivable more quickly, while a higher DSO may signal potential issues with collecting sales revenue efficiently. L3Harris Technologies Inc should monitor its DSO closely to ensure effective management of its accounts receivable and cash flow.