TE Connectivity Ltd (TEL)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.38 | 5.66 | 5.08 | 5.10 | 5.77 | |
| DSO | days | 67.88 | 64.49 | 71.89 | 71.56 | 63.29 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.38
= 67.88
Based on the data provided, TE Connectivity Ltd's days of sales outstanding (DSO) have shown some variation over the past five years. In September 2023, the DSO was 67.88 days, slightly higher than the previous year's DSO of 64.49 days. This indicates that on average, it took TE Connectivity Ltd 67.88 days to collect its accounts receivable.
Comparing this to the trend over the past five years, we can see that there have been fluctuations in the DSO metric. In 2021 and 2020, the DSO was higher at 71.89 days and 71.56 days, respectively. However, in 2019, the DSO was lower at 63.29 days.
The increase in DSO from 2022 to 2023 may suggest that the company is taking longer to collect its accounts receivable, which could potentially impact its cash flow and liquidity. It is important for TE Connectivity Ltd to monitor and actively manage its DSO to ensure efficient working capital management and timely collection of receivables.
Peer comparison
Sep 30, 2023