PHINIA Inc. (PHIN)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Receivables turnover | 4.22 | 3.80 | 3.46 | |
| DSO | days | 86.56 | 96.11 | 105.42 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.22
= 86.56
Days Sales Outstanding (DSO) is a key financial ratio that measures how long it takes for a company to collect its accounts receivable. The DSO of PHINIA Inc. has shown a decreasing trend over the periods analyzed. On March 31, 2024, the DSO was at 105.42 days, suggesting that, on average, it took the company around 105 days to collect its sales. However, by September 30, 2024, the DSO had decreased to 96.11 days, indicating an improvement in the company's receivables collection efficiency. By the end of the year, on December 31, 2024, the DSO further decreased to 86.56 days, demonstrating a continued reduction in the time it takes for PHINIA Inc. to convert its sales into cash.
The declining trend in DSO indicates that PHINIA Inc. is managing its accounts receivable more effectively, potentially resulting in improved cash flows and a healthier liquidity position. This trend suggests that the company is becoming more efficient in collecting payments from its customers, which can enhance its overall financial health and operational performance.
Peer comparison
Dec 31, 2024