Ametek Inc (AME)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.43	6.60	6.60	7.69	6.81
DSO	days	56.75	55.27	55.31	47.46	53.62

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.43
= 56.75

The Days of Sales Outstanding (DSO) ratio for Ametek Inc has shown fluctuating trends over the past five years. In 2023, the DSO was 56.04 days, slightly higher compared to the previous year at 54.56 days. This indicates that the company took slightly longer to collect its accounts receivable in 2023.

Looking back, in 2022 and 2021, the DSO remained relatively stable at around 54-55 days. However, there was a noticeable decrease in 2020, with the DSO falling to 48.03 days, suggesting that the company improved its collection efficiency that year. Prior to 2020, the DSO was higher in 2019 at 52.70 days.

Overall, while the DSO ratio for Ametek Inc has shown some variability, it is essential for the company to monitor and manage its accounts receivable effectively to ensure timely collection and improve liquidity.