nVent Electric PLC (NVT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze nVent Electric plc's Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend in the collection efficiency of the company.
In 2019, the DSO stood at 55.36 days, signifying that, on average, it took around 55.36 days for nVent Electric plc to collect its outstanding sales revenues. Over the next two years, there was an upward trend in DSO, reaching 64.95 days in 2021. This increase suggests a potential delay in the company's collection of accounts receivable, pointing towards less efficient working capital management.
However, in 2022, there was a slight improvement as the DSO decreased to 59.29 days, indicating a relative increase in the collection efficiency compared to the previous year. This positive trend continued into 2023, with the DSO further decreasing to 65.93 days.
Overall, nVent Electric plc's DSO has shown variability over the past five years, with a mixed performance in managing its accounts receivable. The company should continue to monitor and possibly streamline its credit and collection policies to ensure timely collection of outstanding sales revenues.
Peer comparison
Dec 31, 2023