AGCO Corporation (AGCO)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.98 | 20.71 | 22.46 | 21.36 | 22.56 | |
| DSO | days | 40.67 | 17.63 | 16.25 | 17.09 | 16.18 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.98
= 40.67
AGCO Corp.'s Days Sales Outstanding (DSO) has shown some fluctuation over the past five years. DSO increased from 32.32 days in 2019 to 34.15 days in 2020 before decreasing to 32.49 days in 2021. However, there was another increase to 35.24 days in 2022 and a further increase to 40.65 days in 2023.
A rising DSO may suggest that AGCO Corp. is taking longer to collect its accounts receivable, which could potentially indicate inefficiencies in its credit and collection processes. It could also imply an increased risk of bad debts if customers are taking longer to pay.
Further investigation into the reasons behind the fluctuating DSO trend, along with analysis of the company's overall working capital management and credit policies, would provide a more comprehensive understanding of AGCO Corp.'s financial performance in this area.
Peer comparison
Dec 31, 2023