AAON Inc (AAON)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.43 | 7.01 | 7.03 | 10.09 | 6.88 | |
| DSO | days | 43.32 | 52.04 | 51.89 | 36.18 | 53.07 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.43
= 43.32
The days of sales outstanding (DSO) for AAON Inc. have shown fluctuations over the past five years. In 2023, the DSO decreased to 43.14 days from 52.22 days in 2022, indicating that the company is collecting its accounts receivable more efficiently compared to the previous year. This improvement suggests a better management of credit and collection policies.
In 2021 and 2019, the DSO was relatively high at 52.24 days and 53.04 days respectively, reflecting that AAON Inc. took a longer time to collect its sales revenues from customers during those years. However, in 2020, the DSO decreased significantly to 36.89 days, indicating a more efficient collection process compared to the surrounding years.
Overall, AAON Inc. has shown variations in its DSO over the past five years, potentially influenced by changes in credit terms, customer payment behavior, and overall economic conditions. The company's ability to effectively manage its DSO is crucial for its liquidity and cash flow management.
Peer comparison
Dec 31, 2023