Albemarle Corp (ALB)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		4.21	4.16	4.60	4.52	4.58
DSO	days	86.79	87.65	79.30	80.70	79.69

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.21
= 86.79

Albemarle Corp's Days of Sales Outstanding (DSO) is a metric used to evaluate how efficiently the company is collecting its accounts receivable. From the provided data, we observe fluctuations in Albemarle Corp's DSO over the years:

- As of December 31, 2020, the DSO was 79.69 days, indicating that on average, it took the company about 79.69 days to collect outstanding sales.
- The DSO slightly increased to 80.70 days by December 31, 2021, suggesting a potential delay in collecting accounts receivable compared to the previous year.
- By December 31, 2022, the DSO decreased to 79.30 days, showing an improvement in the collection of sales compared to the previous year.
- However, the trend reversed by December 31, 2023, with the DSO rising to 87.65 days, indicating a longer average collection period for accounts receivable.
- In the latest period, December 31, 2024, the DSO was 86.79 days, maintaining a relatively high level compared to the previous year.

Overall, the fluctuations in Albemarle Corp's DSO suggest varying efficiencies in collecting accounts receivable over the years, with potential implications for cash flow management and working capital. Further analysis would be needed to understand the specific factors driving these changes and to assess the company's overall financial health and operational efficiency.