Autoliv Inc (ALV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.59	4.50	4.70	4.04	5.21
DSO	days	79.61	81.03	77.66	90.34	70.02

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.59
= 79.61

The Days of Sales Outstanding (DSO) for Autoliv Inc. have shown some variability over the past five years. In 2023, the DSO was 78.68 days, indicating that on average, the company takes around 78.68 days to collect its accounts receivable. This represents a slight improvement from the previous year when the DSO was 80.99 days.

Comparing the latest DSO to previous years, we observe that in 2021 and 2019, Autoliv had DSO figures of 77.39 days and 70.61 days, respectively. These lower DSO values indicate that the company may have been more efficient in collecting its accounts receivable in those years compared to 2023.

On the other hand, the DSO was notably higher in 2020, reaching 91.44 days. This suggests that Autoliv took longer to collect its receivables in that year, which could have been due to various factors such as changes in the company's credit policies or the nature of its customer base.

Overall, while Autoliv Inc.'s DSO has fluctuated over the past five years, the downward trend from 2022 to 2023 is a positive sign of potentially improving efficiency in accounts receivable management. It would be beneficial for the company to continue monitoring and managing its DSO to ensure timely collection of receivables and maintain healthy cash flow levels.