Lennox International Inc (LII)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.38 | 7.08 | 5.69 | 7.40 | 7.75 | 6.48 | 5.63 | 7.09 | 8.25 | 7.14 | 5.98 | 7.35 | 8.11 | 6.64 | 5.74 | 7.59 | 7.97 | 6.05 | 5.24 | 7.64 | |
| DSO | days | 43.56 | 51.54 | 64.16 | 49.33 | 47.07 | 56.34 | 64.86 | 51.46 | 44.23 | 51.15 | 61.08 | 49.66 | 45.03 | 54.95 | 63.59 | 48.07 | 45.81 | 60.31 | 69.72 | 47.78 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.38
= 43.56
Days Sales Outstanding (DSO) is a metric used to evaluate how efficiently a company is able to collect its accounts receivable. It measures the average number of days it takes a company to collect payment after making a sale.
Analyzing the DSO trend of Lennox International Inc over the past eight quarters, we observe fluctuations in the collection efficiency. In Q4 2023, the DSO was 43.56 days, down from 51.54 days in the previous quarter, indicating an improvement in the company's ability to collect payments from customers. However, it is still higher than the DSO of Q4 2022, which was 47.07 days.
Q2 2023 had the highest DSO of 64.16 days over the period under review, reflecting a slower collection of accounts receivable which could potentially affect the company's cash flow and working capital management. The DSO decreased in Q3 and Q4 2023, reflecting an improvement in collecting payments.
Comparing the DSO of Q4 2023 to the same quarter in the previous year (Q4 2022), there is a noticeable improvement, as the DSO decreased from 47.07 days to 43.56 days. This suggests better efficiency in collecting receivables compared to the same period last year.
Overall, the DSO trend of Lennox International Inc shows some variability but has improved in the most recent quarter, which could indicate more efficient accounts receivable management. However, it is important for the company to closely monitor and maintain this positive trend to ensure healthy cash flow and working capital management in the future.
Peer comparison
Dec 31, 2023