Powell Industries Inc (POWL)
Days of sales outstanding (DSO)
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.72 | 5.46 | 4.62 | 4.52 | 3.39 | 3.19 | 3.52 | 3.67 | 5.04 | 4.86 | 5.28 | 5.91 | 6.00 | 6.29 | 6.35 | 6.34 | 7.37 | 5.67 | 6.29 | 5.36 | |
| DSO | days | 77.32 | 66.90 | 79.02 | 80.70 | 107.81 | 114.26 | 103.78 | 99.54 | 72.46 | 75.14 | 69.10 | 61.77 | 60.81 | 58.04 | 57.50 | 57.54 | 49.55 | 64.42 | 58.03 | 68.06 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.72
= 77.32
The days of sales outstanding (DSO) for Powell Industries Inc have exhibited fluctuations over the past few quarters. The DSO represents the average number of days it takes for the company to collect revenue from its customers. A lower DSO indicates that the company is collecting payments more quickly, while a higher DSO suggests that customers are taking longer to pay.
Looking at the trend in Powell Industries Inc's DSO, we can observe that it was relatively high in the earlier quarters, exceeding 100 days in some instances, indicating that the company might have faced challenges in collecting payments promptly. However, in recent quarters, the DSO has decreased, indicating improvement in the company's ability to collect payments in a more timely manner.
Overall, the downward trend in DSO is a positive indication as it suggests that Powell Industries Inc is becoming more efficient in managing its accounts receivable and collecting payments from customers. It is essential for the company to continue monitoring and managing its DSO to ensure optimal cash flow and financial performance.
Peer comparison
Sep 30, 2024