Veralto Corporation (VLTO)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Receivables turnover | 5.23 | 5.97 | 6.16 | |
| DSO | days | 69.84 | 61.15 | 59.28 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.23
= 69.84
The days of sales outstanding (DSO) for Veralto Corporation have shown an increasing trend over the three periods analyzed. Specifically, the DSO was 59.28 days as of June 30, 2024, which then increased to 61.15 days by September 30, 2024, and further rose to 69.84 days by December 31, 2024.
A higher DSO indicates that it is taking Veralto Corporation longer to collect its accounts receivable, potentially signaling inefficiencies in the company's accounts receivable management or potential issues with customer creditworthiness. This longer collection period could negatively impact the company's cash flow and liquidity position.
It is important for Veralto Corporation to closely monitor and address the increasing trend in DSO to ensure timely collection of receivables, improve cash flow, and maintain a healthy working capital position. Further analysis and comparison of DSO with industry benchmarks and historical trends could provide additional insights into the company's credit and collection practices.
Peer comparison
Dec 31, 2024