Rockwell Automation Inc (ROK)
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 | 4.54 | 4.64 | 4.56 | 4.72 | 4.25 | 3.91 | 4.11 | 4.29 | 4.39 | 4.31 | 4.60 | 4.85 | 4.87 | 4.68 | 4.27 | 4.45 | 5.01 | 5.33 | 5.14 | 5.13 | |
| DSO | days | 80.38 | 78.66 | 80.09 | 77.31 | 85.96 | 93.40 | 88.76 | 85.12 | 83.10 | 84.60 | 79.27 | 75.24 | 75.02 | 78.07 | 85.41 | 82.02 | 72.92 | 68.42 | 71.07 | 71.14 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.54
= 80.38
Days Sales Outstanding (DSO) is a key ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more efficiently, while a higher DSO may suggest slower collection of accounts receivable.
Analyzing the DSO trend for Rockwell Automation Inc over the past several quarters, we observe fluctuations in the ratio. The DSO has ranged from a low of 68.42 days to a high of 93.40 days during the period under review.
Notably, there was an increase in DSO from the third quarter of 2023 to the first quarter of 2024, possibly indicating some challenges in collecting receivables during that period. However, in the most recent quarter, the DSO has decreased to 80.38 days, which could be a positive sign of improved efficiency in collecting payments.
Overall, it is essential for Rockwell Automation Inc to closely monitor its DSO and strive to maintain it at an optimal level to ensure healthy cash flow and working capital management. Efficient accounts receivable management is crucial for the company's financial health and liquidity position.
Peer comparison
Sep 30, 2024