TE Connectivity Ltd (TEL)
Days of sales outstanding (DSO)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 5.77 | 5.52 | 5.67 | |
| DSO | days | 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 | 63.23 | 66.09 | 64.37 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.64
= 64.73
The days of sales outstanding (DSO) for TE Connectivity Ltd have shown some fluctuations over the past few quarters. The DSO is a measure of the average number of days a company takes to collect revenue after a sale is made.
Looking at the data provided, we can see that the DSO figures range from a low of 63.23 days in March 2019 to a high of 81.84 days in June 2021. The trend appears to be somewhat fluctuating but generally stable over the period.
In more recent quarters, the DSO has been in the range of mid to high 60s, indicating that on average, TE Connectivity is collecting its accounts receivable within approximately 2 to 3 months. This suggests that the company has been effective in managing its credit and collection processes.
It's worth noting that the DSO can be influenced by various factors like industry norms, company's credit policies, customer payment behaviors, and economic conditions. Therefore, it would be beneficial to further analyze the reasons behind the fluctuations and changes in DSO to assess the overall efficiency of TE Connectivity's accounts receivable management.
Peer comparison
Dec 31, 2023