Rollins Inc (ROL)
Days of sales outstanding (DSO)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 14.30 | 12.46 | 13.17 | 14.80 | 14.26 | 12.55 | 13.38 | 14.60 | 14.22 | 12.83 | 13.09 | 14.89 | 14.43 | 13.10 | 126.00 | 115.64 | 107.60 | 111.51 | 108.07 | 139.08 | |
| DSO | days | 25.52 | 29.30 | 27.71 | 24.66 | 25.59 | 29.09 | 27.29 | 24.99 | 25.67 | 28.44 | 27.88 | 24.51 | 25.30 | 27.86 | 2.90 | 3.16 | 3.39 | 3.27 | 3.38 | 2.62 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.30
= 25.52
The Days Sales Outstanding (DSO) metric for Rollins Inc shows the average number of days it takes the company to collect revenue from its customers. From the data provided, we observe fluctuations in the DSO over the quarters analyzed.
Initially, the DSO for Rollins Inc was relatively low, ranging from 2.62 to 3.39 days in the first four quarters. This indicated efficient collection of receivables. However, there was a sudden and significant spike in DSO in the third quarter of 2021, reaching 27.86 days, which was notably higher than previous periods. This increase suggests potential challenges in collecting payments from customers during that period.
Although the company managed to decrease the DSO in subsequent quarters, the metric remained elevated compared to the earlier periods. The DSO fluctuated between 24 and 29 days from the first quarter of 2022 to the fourth quarter of 2024. This indicates a potential ongoing issue with collections efficiency, as the company is taking longer to convert sales into cash.
Overall, the DSO trend for Rollins Inc shows a period of efficient collection followed by a sudden spike and subsequent stabilization at a higher level. It suggests that the company may need to focus on improving its accounts receivable management to expedite cash inflows and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024