Trane Technologies plc (TT)

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		5.89	5.43	5.18	6.16	5.67	5.32	5.29	5.86	5.72	5.55	5.24	5.82	5.54	5.69	6.05	7.36	7.48	5.56	5.21	5.92
DSO	days	61.94	67.17	70.49	59.24	64.43	68.64	68.97	62.30	63.83	65.78	69.66	62.68	65.90	64.12	60.35	49.59	48.79	65.68	70.02	61.66

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.89
= 61.94

To analyze the days of sales outstanding (DSO) trend for Trane Technologies plc, we can observe the following based on the data provided:

1. There has been a fluctuating trend in DSO over the past eight quarters. DSO values have ranged between 58.35 days and 69.45 days.

2. Q1 2023 and Q4 2022 have the lowest DSO values at 58.35 days and 61.27 days, respectively, indicating that the company was able to collect its accounts receivable more efficiently during these periods.

3. Q2 2023 recorded the highest DSO value at 69.45 days, implying a longer time taken by the company to collect its outstanding sales.

4. There is a general decreasing trend in DSO from Q2 2023 to Q1 2023, showing an improvement in the company's accounts receivable turnover during that period.

5. Comparing Q4 2022 and Q4 2023, there is a slight increase in DSO from 61.27 days to 61.05 days, although the change is not significant.

6. It is essential for Trane Technologies plc to monitor and manage its DSO effectively to ensure timely collection of accounts receivable and maintain healthy cash flows.

7. Further analysis and comparison with industry benchmarks or historical data may provide additional insights into the company's working capital management and financial performance.

Trane Technologies plc (TT)

Days of sales outstanding (DSO)

See also: