Albemarle Corp (ALB)

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		4.16	5.79	5.46	5.27	4.60	4.78	3.99	4.97	4.52	5.74	6.29	5.42	4.58	5.61	5.68	5.90	4.46	4.86	4.68	5.13
DSO	days	87.65	63.08	66.90	69.25	79.30	76.40	91.55	73.47	80.70	63.58	58.04	67.29	79.69	65.03	64.30	61.85	81.81	75.06	77.99	71.22

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.16
= 87.65

Albemarle Corp.'s Days of Sales Outstanding (DSO) reflects the average number of days it takes for the company to collect revenue from its sales. Analyzing the trend in DSO over the past eight quarters, we observe fluctuations in the metric.

In Q4 2023, Albemarle Corp. reported a DSO of 69.65 days, showing a slight increase from the previous quarter's DSO of 63.08 days. This suggests that the company took slightly longer to collect revenue from its sales in the most recent quarter.

Comparing the current DSO to the same quarter a year ago, we note a decrease from Q4 2022's DSO of 72.23 days. This improvement indicates that Albemarle Corp. has been more efficient in collecting payments from its customers in the recent period.

Looking at the broader trend over the past two years, we see that DSO has exhibited some volatility, with peaks and troughs in different quarters. The highest DSO was recorded in Q3 2022 at 91.55 days, suggesting a delayed collection of revenue during that period. Since then, the company has made significant progress in reducing the DSO, indicating improvements in its accounts receivable management efficiency.

Overall, while there have been fluctuations in Albemarle Corp.'s DSO over the past eight quarters, the recent trend shows a relative improvement in collecting revenue from sales more promptly. However, continued monitoring of DSO and its underlying factors is crucial to ensure sustainable cash flow management and operational efficiency.