Parker-Hannifin Corporation (PH)

Days of sales outstanding (DSO)

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Receivables turnover		91.82	95.66	103.95	115.91	107.71	88.48	82.02	67.43	87.06	81.47	94.73	83.61	83.15	86.06	94.09	102.47	98.82	5.86	6.51	6.52
DSO	days	3.98	3.82	3.51	3.15	3.39	4.13	4.45	5.41	4.19	4.48	3.85	4.37	4.39	4.24	3.88	3.56	3.69	62.29	56.03	55.97

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 91.82
= 3.98

The days of sales outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates faster collection of accounts receivable and better liquidity.

In the case of Parker-Hannifin Corporation, the DSO has been fluctuating over the reported periods. Historically, the company has managed to keep its DSO relatively low, indicating efficient accounts receivable management.

Looking at the most recent data, as of June 30, 2024, the DSO stands at 3.98 days, which is a slight increase compared to the previous quarter's DSO of 3.82 days. This suggests a slightly slower collection of receivables in the current period.

However, it is important to note that the DSO for Parker-Hannifin Corporation has generally been well-managed and has stayed within a reasonable range over time. The company's ability to maintain a low DSO indicates effective credit and collection policies, which can contribute to strong cash flow and liquidity.

Overall, the trend of Parker-Hannifin Corporation's DSO reflects a company that is efficient in managing its accounts receivable, which is a positive indicator of its financial health and operational effectiveness.