Resideo Technologies Inc (REZI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.35 | 6.30 | 6.61 | 11.68 | 12.14 | |
| DSO | days | 57.49 | 57.98 | 55.26 | 31.25 | 30.07 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.35
= 57.49
The days of sales outstanding (DSO) for Resideo Technologies Inc have shown some fluctuations over the past five years. In 2023, the DSO was 56.90 days, slightly lower than the prior year figure of 57.41 days in 2022. This indicates that the company took slightly fewer days to collect its accounts receivable in 2023 compared to 2022.
Looking back further, we see that Resideo experienced a decrease in DSO from 54.69 days in 2021 to 62.12 days in 2020, before improving to 59.78 days in 2019. This fluctuation in DSO suggests some variability in the company's efficiency in collecting outstanding receivables over the years.
Overall, while the recent decrease in DSO from 2022 to 2023 is a positive sign of improved efficiency in accounts receivable collection, it would be important to monitor this metric over time to assess the company's ongoing effectiveness in managing its credit and collection policies.