Alcoa Corp (AA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.99 | 13.56 | 13.47 | 16.40 | 15.60 | |
| DSO | days | 28.10 | 26.92 | 27.09 | 22.25 | 23.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.99
= 28.10
Alcoa Corp's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable.
Alcoa Corp's DSO has shown some fluctuation over the past five years. In 2023, the DSO increased to 27.95 days from 26.65 days in 2022, indicating a slight delay in revenue collection. However, the DSO still remains relatively low compared to previous years.
Compared to 2021 and 2019, Alcoa Corp's DSO has increased, suggesting that the company may be taking longer to collect payments from customers. It is important for the company to monitor this trend closely to ensure efficient cash flow management.
Overall, the slight increase in DSO in 2023 may warrant further investigation to identify the underlying reasons for the change and to implement strategies to optimize the collection process.
Peer comparison
Dec 31, 2023