Trane Technologies plc (TT)
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 | 6.41 | 5.69 | 5.44 | 6.13 | 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 | |
| DSO | days | 56.93 | 64.17 | 67.07 | 59.54 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.41
= 56.93
The days of sales outstanding (DSO) metric for Trane Technologies plc has fluctuated over the past few years, ranging from a low of 49.59 days on March 31, 2020 to a high of 70.49 days on June 30, 2023.
On average, the company takes around 60-65 days to collect its accounts receivable, indicating that it typically takes approximately two to three months to convert its sales into cash receipts.
A decreasing trend in DSO over time can suggest improved efficiency in collecting payments from customers, while an increasing trend may indicate potential issues with customer creditworthiness or collections processes.
It is worth further analyzing the reasons behind the fluctuations in DSO to understand the underlying factors impacting Trane Technologies' ability to collect payments in a timely manner and manage its working capital effectively.
See also:
Trane Technologies plc Average Receivable Collection Period (Quarterly Data)