Albany International Corporation (AIN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.65 | 4.60 | 4.18 | 4.06 | 4.42 | |
| DSO | days | 99.95 | 79.37 | 87.23 | 89.90 | 82.62 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.65
= 99.95
The days of sales outstanding (DSO) for Albany International Corp. have shown fluctuations over the past five years. In 2019, the DSO was 77.71 days, which decreased to 76.65 days in 2020, indicating a slight improvement in the collection of accounts receivable. However, in 2021, the DSO increased to 75.41 days, suggesting a potential delay in collecting sales.
Subsequently, in 2022, the DSO further decreased to 70.55 days, which is a positive sign indicating faster collection of receivables compared to the previous year. However, in 2023, the DSO increased significantly to 91.51 days, reaching the highest level in the past five years. This substantial increase may imply challenges in collecting sales revenue promptly, which could impact the company's cash flow and liquidity position.
Overall, a rising DSO trend, as observed in 2023, warrants a closer examination of Albany International Corp.'s accounts receivable management practices to ensure the efficient collection of sales and maintain healthy working capital levels.