Otis Worldwide Corp (OTIS)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.92 | 3.75 | 3.81 | 4.13 | 3.64 | |
| DSO | days | 93.19 | 97.44 | 95.71 | 88.38 | 100.25 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.92
= 93.19
To analyze Otis Worldwide Corp's Days Sales Outstanding (DSO) over the past five years, we can observe a fluctuation in the metric.
In 2020, the DSO was relatively high at 100.25 days, indicating that on average, it took the company over 3 months to collect its accounts receivable. This could signal inefficiencies in the company's collections process or potential credit risks with customers.
However, in the following years, Otis Worldwide Corp managed to improve its DSO performance. By the end of 2021, the DSO decreased significantly to 88.38 days, suggesting a more efficient accounts receivable management strategy.
The trend continued as the DSO increased slightly to 95.71 days in 2022, indicating a slight deterioration in collections efficiency. The metric further rose to 97.44 days in 2023 and slightly decreased to 93.19 days in 2024.
Overall, despite some fluctuations, Otis Worldwide Corp has shown improvement in managing its receivables, with variability in the DSO metric over the years. The company should continue monitoring this ratio to ensure effective cash flow management and timely collection of outstanding payments.
Peer comparison
Dec 31, 2024