Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.16 | 5.10 | 5.41 | 5.55 | 5.14 | 5.10 | — | — | 5.11 | ||||
| DSO | days | 70.78 | 71.54 | 67.52 | 65.79 | 71.06 | 71.52 | — | — | 71.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.16
= 70.78
To analyze Vontier Corporation's days of sales outstanding (DSO) trend, we observe a consistent pattern of DSO fluctuating throughout the quarters. The DSO ranged from 52.28 days in Q1 2022 to 60.17 days in Q3 2023. Overall, there seems to be a slight increase in DSO over the past few quarters.
The DSO measures the average number of days it takes for a company to collect payments from its customers. A high DSO value indicates that the company is taking longer to collect payments, which could potentially impact cash flow and working capital management.
Vontier Corporation should closely monitor its DSO trend to ensure efficient management of accounts receivable and timely collection of payments. Additionally, sustained high DSO values may warrant a review of credit policies, customer payment terms, and collection processes to improve cash flow and overall financial performance.
Peer comparison
Dec 31, 2023