TE Connectivity Ltd (TEL)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.17 | 5.45 | 5.48 | 5.64 | 5.38 | 5.43 | 5.37 | 5.58 | 5.66 | 5.01 | 5.03 | 5.33 | 5.08 | 4.80 | 4.46 | 4.73 | 5.11 | 5.67 | 5.29 | 5.66 | |
| DSO | days | 70.54 | 66.93 | 66.58 | 64.73 | 67.88 | 67.22 | 67.92 | 65.45 | 64.49 | 72.92 | 72.57 | 68.45 | 71.89 | 76.06 | 81.84 | 77.17 | 71.49 | 64.34 | 69.01 | 64.51 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.17
= 70.54
Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect revenue after a sale has been made. A lower DSO value indicates that the company is collecting payments more quickly, which is generally seen as a positive sign of efficiency in managing accounts receivable.
Analyzing the data for TE Connectivity Ltd over the past few quarters, we can observe fluctuations in the DSO metric. The DSO values have ranged from a low of 64.34 days to a high of 81.84 days over the last five quarters, with the most recent DSO reported at 70.54 days as of September 30, 2024.
The trend in DSO values suggests that the company has been relatively consistent in managing its accounts receivable turnover in recent quarters, with some variability in collection efficiency. A DSO value that is stable or decreasing over time would indicate that the company is improving its collection practices and efficiency in turning sales into cash.
Overall, while there have been fluctuations in DSO, the most recent DSO value of 70.54 days indicates that TE Connectivity Ltd takes around 70 days on average to collect its accounts receivable, highlighting the importance of monitoring this metric to ensure the company's liquidity and cash flow health.
Peer comparison
Sep 30, 2024