Rockwell Automation Inc (ROK)
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 | 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 | 5.62 | 5.42 | 5.37 | |
| DSO | days | 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 | 64.97 | 67.39 | 67.97 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.72
= 77.31
To analyze Rockwell Automation Inc's days of sales outstanding (DSO), we can track the trend in DSO over the past eight quarters. DSO measures the number of days it takes a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting revenue more quickly, while a higher DSO may suggest inefficiencies in collecting receivables.
Reviewing the quarterly DSO figures, we observe a fluctuating pattern. In the most recent quarter, ending December 31, 2023, the DSO was 77.36 days, representing a decrease from the previous quarter's 87.34 days. This implies that Rockwell Automation Inc improved its collections efficiency, collecting revenue from sales more rapidly. However, it is essential to assess the entire trend to gain a holistic understanding.
Comparing the DSO to the same quarter in the prior year, we observe that the DSO has decreased from 85.16 days in December 2022 to 77.36 days in December 2023, indicating enhanced efficiency in receivables collections year over year. Nevertheless, there were fluctuations in the DSO over the quarters, with levels reaching as high as 95.05 days in the second quarter of 2023.
The variations in DSO may be influenced by factors such as changes in sales terms, customer payment behaviors, or the effectiveness of the company's credit and collection policies.
Overall, while the recent decrease in DSO is a positive indicator, management should continue to monitor and potentially refine its credit and collection processes to ensure efficient cash flow management and optimal working capital efficiency. Further analysis of the underlying reasons for the DSO fluctuations will provide insights into the company's effectiveness in managing its accounts receivable.
Peer comparison
Dec 31, 2023