Archer-Daniels-Midland Company (ADM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 22.20 | 20.62 | 25.50 | 22.75 | 28.14 | |
| DSO | days | 16.44 | 17.70 | 14.31 | 16.05 | 12.97 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.20
= 16.44
Archer-Daniels-Midland Company's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. The trend in DSO over the past five years reflects the company's efficiency in managing its accounts receivable.
In 2023, the DSO was 16.44 days, showing a slight improvement compared to 17.70 days in 2022. This indicates that the company was able to collect payments from customers more quickly in 2023.
In 2021, the DSO was 14.31 days, lower than the previous year's 16.05 days in 2020. This suggests that the company improved its collection process and was able to convert sales into cash more efficiently.
The lowest DSO was recorded in 2019 at 12.97 days, indicating that the company had a particularly strong performance in collecting payments that year.
Overall, a decreasing trend in DSO over the years is a positive sign as it shows that the company is managing its accounts receivable effectively and converting sales into cash promptly. However, it is essential to monitor DSO regularly to ensure efficient cash flow management and timely collections.
Peer comparison
Dec 31, 2023