Vontier Corp (VNT)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.71 | 5.12 | 5.05 | 5.11 | 4.96 | |
| DSO | days | 77.54 | 71.22 | 72.22 | 71.45 | 73.66 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.71
= 77.54
The Days Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after a sale has been made. In the case of Vontier Corp, the DSO has shown fluctuations over the past five years.
As of December 31, 2020, Vontier Corp's DSO stood at 73.66 days, indicating that on average, it took the company around 74 days to collect its receivables. Over the following years, there was a slight improvement in the DSO, with figures of 71.45 days as of December 31, 2021, 72.22 days by the end of 2022, and 71.22 days as of December 31, 2023.
However, there was a notable increase in the DSO to 77.54 days as of December 31, 2024. This increase suggests that Vontier Corp may be taking longer to collect its accounts receivable compared to the previous year, which could potentially indicate issues with credit policies, collection efforts, or a shift in customer payment behavior.
Overall, analyzing Vontier Corp's DSO trend provides insights into the efficiency of the company's accounts receivable management and highlights the importance of monitoring and addressing changes in this metric to ensure healthy cash flow and operational performance.
Peer comparison
Dec 31, 2024