Resideo Technologies Inc (REZI)
Days of sales outstanding (DSO)
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.37 | 6.28 | 6.02 | 6.46 | 6.30 | — | — | — | 6.61 | — | — | — | 5.86 | 5.50 | 6.71 | 6.00 | 6.04 | 5.80 | 5.86 | ||
| DSO | days | 57.34 | 58.08 | 60.68 | 56.51 | 57.98 | — | — | — | 55.26 | — | — | — | 62.29 | 66.39 | 54.42 | 60.87 | 60.40 | 62.96 | 62.34 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.37
= 57.34
Resideo Technologies Inc's Days Sales Outstanding (DSO) has shown fluctuations over the past eight quarters. In Q4 2023, the DSO was 56.90 days, which was a slight decrease from the previous quarter's 57.56 days. Comparing to the same period in the previous year, Q4 2022's DSO of 57.41 days was also lower.
Despite some fluctuations, there seems to be a general trend of improving DSO over the past two years. Q2 2022 had the highest DSO of 63.77 days, but since then, there has been a gradual decrease in DSO.
It is important to note that a decreasing DSO indicates that the company is collecting its accounts receivable more quickly, which could signify more efficient operations or effective credit management. This trend could potentially improve the company's cash flow and overall financial health.
However, it is essential for Resideo Technologies Inc to continue monitoring its DSO closely to ensure that any deviations from this trend are promptly addressed to maintain healthy cash flows and financial stability.