Lennox International Inc (LII)
Days of sales outstanding (DSO)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.08 | 6.31 | 5.85 | 8.08 | 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 | |
| DSO | days | 45.18 | 57.86 | 62.44 | 45.15 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.08
= 45.18
Days Sales Outstanding (DSO) is a key efficiency ratio that measures how quickly a company collects its accounts receivable. A lower DSO is generally preferable as it indicates a shorter time period for collecting outstanding receivables.
Analyzing the DSO data of Lennox International Inc over multiple periods, we observe fluctuations in the metric. From December 31, 2022, to March 31, 2024, the DSO ranged from a low of 43.56 days to a high of 64.16 days, showing variability in the company's collection efficiency.
Lennox International Inc experienced a decrease in DSO from December 31, 2022, to December 31, 2024, indicating an improvement in collecting receivables. However, there were instances of increases in DSO in certain quarters, such as June 30, 2022, and June 30, 2023, which may raise concerns about the company's credit policies or customer payment behaviors during those periods.
Overall, a closer examination of the underlying factors impacting DSO, such as changes in credit terms, customer concentrations, or collection procedures, would be necessary to fully assess Lennox International Inc's receivables management efficiency and cash flow performance.
Peer comparison
Dec 31, 2024