Autoliv Inc (ALV)

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		4.59	—	—	—	4.50	—	—	8,166.00	4.70	8,581.80	8,764.80	7,790.60	4.06	6,425.91	7,064.10	5,446.33	5.23	5.14	5.05	4.90
DSO	days	79.49	—	—	—	81.03	—	—	0.04	77.66	0.04	0.04	0.05	89.82	0.06	0.05	0.07	69.77	71.02	72.27	74.47

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.59
= 79.49

Days Sales Outstanding (DSO) is a key metric used to evaluate how long it takes for a company to collect revenue from its sales. A lower DSO indicates that the company is efficient in collecting payments from customers, while a higher DSO may suggest potential issues with accounts receivable management.

Analyzing the DSO trend for Autoliv Inc. over the past eight quarters, we observe fluctuations in the collection period. In Q1 2022, the DSO was 82.07 days, which decreased to 80.99 days in Q4 2022. However, the trend reversed in the first two quarters of 2023, with an increase to 83.45 days in Q1 2023 and further to 81.82 days in Q2 2023. In Q3 and Q4 2023, there was a slight decrease to 79.07 days and 78.68 days, respectively.

Overall, Autoliv Inc. has experienced some volatility in its DSO over the past two years. It is essential for the company to monitor and manage its accounts receivable effectively to ensure timely collection of funds and maintain liquidity. Further analysis of the underlying reasons for fluctuations in DSO can provide valuable insights into the company's financial health and operational efficiency.