Otis Worldwide Corp (OTIS)
Days of sales outstanding (DSO)
| 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 | 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 | 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, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.75
= 97.44
To analyze Otis Worldwide Corp's Days Sales Outstanding (DSO) over the past eight quarters, we observe a fluctuating trend. DSO measures the average number of days it takes for a company to collect payment after making a sale.
In Q4 2023, the DSO was 90.88 days, showing a slight increase from the previous quarter (Q3 2023) at 89.90 days. Q2 2023 had the highest DSO of 92.17 days in the dataset, indicating a potential delay in collecting receivables during that period. However, there was a subsequent decrease in DSO in Q1 2023 to 90.17 days.
Comparing year-on-year, Q4 2023 DSO was slightly higher than Q4 2022, which was 89.54 days. Notably, there is a general upward trend in DSO over the past two years, with a decrease seen in Q1 2022 at 83.24 days.
The increasing trend in DSO could suggest challenges in collecting receivables efficiently, potentially indicating issues with credit policies, collection processes, or customer payment behaviors. It is essential for Otis Worldwide Corp to actively manage DSO to ensure timely liquidity and optimize working capital efficiency. Further analysis and monitoring of the DSO trend in upcoming quarters would provide valuable insights into the company's receivables management effectiveness.
Peer comparison
Dec 31, 2023