Antero Midstream Partners LP (AM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | 10.49 | 10.84 | 9.81 | 7.51 | |
| DSO | days | — | 34.78 | 33.68 | 37.21 | 48.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The Days of Sales Outstanding (DSO) ratio measures how efficiently a company is collecting its accounts receivable. Lower DSO values indicate faster collections, which is generally more favorable for the company's cash flow and liquidity.
Analyzing the DSO trend for Antero Midstream Corp over the past five years, we observe a progressive improvement in collections efficiency. The DSO has decreased from 45.37 days in 2019 to 29.39 days in 2023. This downward trend signifies that the company has been able to collect its receivables more quickly, which may suggest effective credit management or better customer payment practices.
The decrease in DSO from 2022 to 2023, from 32.3 days to 29.39 days, also indicates a positive trend in the most recent period, reflecting further efficiency in accounts receivable collections. This reduction may imply that the company has enhanced its collection processes or implemented better credit policies, which could contribute to improved cash flows and overall financial health.
Overall, the declining trend in DSO for Antero Midstream Corp demonstrates an improvement in managing receivables over the years, potentially enhancing the company's financial performance and liquidity position.
Peer comparison
Dec 31, 2023