Otis Worldwide Corp (OTIS)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.90 | 3.67 | 3.65 | 3.61 | 3.75 | 3.77 | 3.69 | 3.76 | 3.81 | 4.14 | 4.10 | 4.07 | 4.13 | 3.99 | 3.90 | 3.78 | 3.65 | |
| DSO | days | 93.48 | 99.54 | 99.99 | 100.99 | 97.44 | 96.70 | 98.97 | 97.17 | 95.71 | 88.12 | 89.01 | 89.68 | 88.38 | 91.39 | 93.56 | 96.62 | 99.92 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.90
= 93.48
Otis Worldwide Corp's Days Sales Outstanding (DSO) is a key metric that helps assess the efficiency of the company's accounts receivable management. DSO represents the average number of days it takes for a company to collect revenue after a sale is made.
Analyzing the trend in Otis Worldwide Corp's DSO over the specified periods, we observe a general decreasing trend from December 2020 to September 2022, indicating an improvement in the company's ability to collect cash from its customers more rapidly. However, from December 2022, there is a slight uptick in DSO, which could suggest a potential slowdown in collections efficiency.
It is noteworthy that DSO figures fluctuate within a range during the observed periods, with values ranging from a low of 88.12 days on September 30, 2022, to a high of 100.99 days on March 31, 2024. These fluctuations may indicate seasonal variations or changes in the company's sales and collections cycle.
Overall, a lower DSO is generally preferable as it signifies quicker collection of receivables and better liquidity. Otis Worldwide Corp should continue monitoring and managing its DSO to ensure efficient cash flow management and timely collection of outstanding receivables to support its operational activities and growth initiatives.
Peer comparison
Dec 31, 2024