Rollins Inc (ROL)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.34 | 14.26 | 14.22 | 14.62 | 107.60 | |
| DSO | days | 25.46 | 25.59 | 25.67 | 24.96 | 3.39 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.34
= 25.46
Rollins Inc's Days Sales Outstanding (DSO) has shown a significant increase over the years, rising from 3.39 days as of December 31, 2020, to 25.46 days as of December 31, 2024. This indicates that the company is taking longer to collect its accounts receivable, which may raise concerns about its liquidity and ability to manage cash flow efficiently. A higher DSO can imply potential difficulties in converting sales into cash, which may impact the company's working capital management. Rollins Inc should closely monitor its DSO trend and implement strategies to expedite the collection of receivables to improve its cash conversion cycle and overall financial health.
Peer comparison
Dec 31, 2024