Rollins Inc (ROL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.26 | 14.22 | 14.62 | 107.60 | 13.90 | |
| DSO | days | 25.59 | 25.67 | 24.96 | 3.39 | 26.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.26
= 25.59
The days of sales outstanding (DSO) for Rollins, Inc. over the past five years have shown relatively consistent performance, with slight fluctuations year over year. In the most recent fiscal year ending on December 31, 2023, the DSO was recorded at 25.56 days, slightly lower compared to the previous year's DSO of 25.64 days. This indicates that on average, it takes approximately 25.56 days for Rollins to collect its accounts receivable from customers.
Looking back at the trend over the five-year period, we observe that there has been a marginal improvement in DSO from 26.27 days in 2019 to 25.56 days in 2023. This reduction suggests that Rollins has been effective in managing its accounts receivable collection process, resulting in quicker conversion of credit sales to cash.
Overall, the DSO metric indicates that Rollins has been efficient in collecting payments from its customers over the years, demonstrating good control over its accounts receivable turnover. However, it is important for the company to continue monitoring and maintaining this efficiency to ensure healthy cash flows and working capital management.
Peer comparison
Dec 31, 2023