Otis Worldwide Corp (OTIS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Receivables turnover | 3.75 | 3.81 | 4.13 | 3.64 | |
| DSO | days | 97.44 | 95.71 | 88.38 | 100.25 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.75
= 97.44
The days of sales outstanding (DSO) for Otis Worldwide Corp have fluctuated over the past five years. In 2023, the DSO increased to 90.88 days from 89.54 days in 2022. This indicates that on average, it took the company approximately 90.88 days to collect its accounts receivable in 2023.
Comparing to the previous years, the DSO was lower in 2021 at 82.51 days but higher in 2020 at 90.08 days and in 2019 at 79.61 days. The upward trend in 2023 compared to 2022 could suggest a decrease in the efficiency of the company's accounts receivable collection process or a change in the company's sales terms.
It's important for Otis Worldwide Corp to monitor and manage its DSO effectively as a high DSO can indicate potential cash flow issues and inefficiencies in collecting receivables, while a low DSO could signal aggressive or overly restrictive credit policies that may impact sales. Additionally, industry benchmarks and trends should be considered when evaluating the company's DSO performance.
Peer comparison
Dec 31, 2023