Albemarle Corp (ALB)

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		4.21	5.33	6.23	6.40	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
DSO	days	86.79	68.43	58.62	57.05	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

December 31, 2024 calculation

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

The Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect payments from its customers. For Albemarle Corp, the DSO has fluctuated over the disclosed period, ranging from a low of 57.05 days to a high of 91.55 days.

Analyzing the trend, we observe that the DSO increased from 61.85 days on March 31, 2020, to 79.69 days by December 31, 2020. This increase indicates a potential deterioration in the company's accounts receivable management efficiency. However, there was a slight improvement in the subsequent quarters, with DSO decreasing to 58.04 days on June 30, 2021.

Subsequently, there were fluctuations in the DSO, with intermittent increases and decreases observed. Notably, the DSO peaked at 91.55 days on June 30, 2022, suggesting a delay in collecting payments from customers during that period.

On December 31, 2024, the DSO stood at 86.79 days, showing a slight increase compared to the previous quarter. Overall, the trend in the DSO for Albemarle Corp indicates some variability in the company's collection efficiency over the reporting periods analyzed. Further monitoring and analysis of the DSO trend would be beneficial to assess the effectiveness of Albemarle Corp's accounts receivable management.