Pentair PLC (PNR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The Days of Sales Outstanding (DSO) is a crucial ratio that provides insights into how efficiently a company is managing its accounts receivable. Pentair plc's DSO has fluctuated over the past five years, ranging from 50.51 days in 2020 to 67.13 days in 2019. In 2023, the DSO stands at 56.25 days, showing an increase from the previous year's 51.35 days.
A higher DSO indicates that Pentair plc is taking longer to collect payments from its customers, potentially signaling inefficiencies in accounts receivable management. Conversely, a lower DSO suggests a quicker collection of receivables, reflecting better liquidity and cash flow management.
It is essential for Pentair plc to closely monitor and analyze the reasons behind the increase in DSO in 2023 to address any potential issues in accounts receivable processes and ensure efficient working capital management.
Peer comparison
Dec 31, 2023