Vontier Corp (VNT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Receivables turnover | 5.12 | 5.05 | 5.11 | 4.96 | |
| DSO | days | 71.22 | 72.22 | 71.45 | 73.66 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.12
= 71.22
To analyze Vontier Corporation's Days Sales Outstanding (DSO) over the past five years, we observe a somewhat fluctuating trend. DSO decreased from 64.60 days in 2019 to 58.67 days in 2023. This improvement indicates that the company is collecting its accounts receivable more efficiently.
However, it is worth noting that there was an increase in DSO in 2020 compared to 2019, with a peak of 60.34 days. This uptick may suggest a temporary slowdown in collections efficiency, possibly due to economic factors or changes in the company's credit policies.
Overall, the trend towards a lower DSO over the years is a positive indication of Vontier's ability to manage its accounts receivable effectively, converting sales into cash quicker. Further analysis and comparison with industry averages could provide additional insights into the company's performance in this regard.
Peer comparison
Dec 31, 2023