AGCO Corporation (AGCO)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.73 | 8.69 | 9.16 | 9.08 | 8.98 | 11.19 | 12.41 | 15.19 | 20.71 | 20.25 | 20.03 | 20.65 | 22.46 | 20.25 | 19.05 | 18.30 | 21.36 | 13.00 | 13.39 | 15.67 | |
| DSO | days | 41.83 | 42.02 | 39.84 | 40.20 | 40.67 | 32.62 | 29.40 | 24.03 | 17.63 | 18.03 | 18.23 | 17.67 | 16.25 | 18.03 | 19.16 | 19.94 | 17.09 | 28.07 | 27.26 | 23.29 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.73
= 41.83
AGCO Corporation's Days Sales Outstanding (DSO) is a metric used to evaluate how long it takes for the company to collect revenue from its credit sales. Looking at the data provided, we can observe the trend in AGCO's DSO over the given time periods.
The DSO for AGCO Corporation has fluctuated over the periods analyzed, indicating changes in the company's ability to collect its accounts receivables efficiently. The DSO ranged from a low of 16.25 days on December 31, 2021, to a high of 42.02 days on September 30, 2024.
A lower DSO suggests that the company is collecting its receivables more quickly, which can be a positive sign of strong cash flow management. Conversely, a higher DSO may indicate potential issues with credit policies, collections processes, or even customer financial health.
The overall trend in AGCO Corporation's DSO appears to have increased towards the latter part of the analyzed periods, potentially indicating a slower collection of accounts receivables. It would be essential for the company to monitor and potentially improve its credit and collection processes to ensure timely cash flows and efficient working capital management.
In conclusion, AGCO Corporation's DSO trend indicates fluctuations in the efficiency of its accounts receivable collections over the analyzed periods, highlighting the importance of closely monitoring and managing working capital to support the company's financial health and stability.
Peer comparison
Dec 31, 2024