Advanced Energy Industries Inc (AEIS)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.80 | — | — | — | 6.11 | — | — | — | 134.76 | 74.98 | 97.43 | 271.97 | 293.50 | 105.73 | — | — | — | — | 235.24 | — | |
| DSO | days | 62.89 | — | — | — | 59.70 | — | — | — | 2.71 | 4.87 | 3.75 | 1.34 | 1.24 | 3.45 | — | — | — | — | 1.55 | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.89
Days Sales Outstanding (DSO) is a crucial metric that measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficiency and strong cash flow management.
Analyzing the DSO trend for Advanced Energy Industries Inc. over the past eight quarters, we can observe fluctuations in the collection period. In Q1 2023, the DSO was 56.83 days, which was slightly higher compared to the previous quarter at 51.12 days in Q2 2023. This indicates a potential slowdown in the company's collections efficiency during that period.
Looking at a broader perspective, the company's DSO has been relatively stable over the past two years, with fluctuations within a reasonable range of 51.12 days to 63.98 days. However, the DSO of 62.26 days in Q4 2023 was higher than the average DSO for the previous quarters, which may suggest a potential need for the company to focus on improving its accounts receivable management in order to accelerate cash inflows.
Overall, while the company has maintained a fairly consistent DSO trend, close monitoring and potential improvement in the accounts receivable collection process could lead to enhanced liquidity and financial performance for Advanced Energy Industries Inc.
Peer comparison
Dec 31, 2023