AMC Networks Inc (AMCX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.86 | 4.11 | 3.61 | 3.28 | 3.43 | |
| DSO | days | 94.45 | 88.85 | 101.11 | 111.15 | 106.29 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.86
= 94.45
To analyze the Days of Sales Outstanding (DSO) of AMC Networks Inc, we observe the trend over the last five years. DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
From 2019 to 2020, the DSO increased from 102.23 days to 105.49 days, indicating a slightly slower collection of receivables. However, in the following years, there was a noticeable improvement in collection efficiency. The DSO decreased to 96.71 days in 2021 and further declined to 85.13 days in 2022, suggesting a more effective management of accounts receivable.
In 2023, the DSO increased slightly to 89.42 days. Despite the increase from the previous year, the DSO remains lower compared to 2020 and 2021, indicating that AMC Networks Inc is still collecting revenue in a timely manner.
Overall, the decreasing trend in DSO from 2020 onwards reflects potential enhancements in the company's credit and collection policies, leading to more efficient working capital management. However, monitoring DSO in the future will be essential to ensure continued effectiveness in accounts receivable management.
Peer comparison
Dec 31, 2023