Parker-Hannifin Corporation (PH)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		91.96	107.55	87.18	83.83	98.43
DSO	days	3.97	3.39	4.19	4.35	3.71

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 91.96
= 3.97

The Days Sales Outstanding (DSO) ratio for Parker-Hannifin Corporation has fluctuated over the past five years. In the most recent period ending June 30, 2024, the DSO stood at 3.97 days, representing a slight increase compared to the previous year but still a relatively low number. This indicates that on average, it takes around 3.97 days for the company to collect its accounts receivable.

Looking back, there has been variability in the DSO ratio, with the lowest DSO of 3.39 days reported in Jun 30, 2023, and the highest DSO of 4.35 days recorded in Jun 30, 2021. This fluctuation suggests potential changes in the company's credit policy, efficiency in collections, or the nature of its customer base over the years.

On the whole, a lower DSO indicates a faster collection of accounts receivable, which can be a positive sign of effective credit management and liquidity. However, a significant deviation from historical trends or industry standards could warrant further investigation into potential cash flow challenges or changes in customer payment behaviors.