Lennox International Inc (LII)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.38 | 7.75 | 8.25 | 8.11 | 7.97 | |
| DSO | days | 43.56 | 47.07 | 44.24 | 45.03 | 45.81 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.38
= 43.56
Lennox International Inc's days of sales outstanding (DSO) has shown a fluctuating trend over the past five years. In 2023, the DSO improved to 43.56 days from 47.07 days in 2022. This indicates that the company was able to collect its accounts receivable more efficiently in 2023 compared to the previous year. However, it is worth noting that the DSO was lower in 2021 at 44.24 days.
Overall, Lennox International Inc's DSO has been relatively stable around the mid-40s range over the past five years. A lower DSO implies that the company is collecting its outstanding receivables faster, which can indicate effective credit management and strong customer relationships. Continuous monitoring of DSO trends will be crucial to assess the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023