Ametek Inc (AME)

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		6.43	6.84	6.76	6.88	6.60	6.79	6.59	6.68	6.59	6.72	6.43	6.59	7.69	7.68	7.85	7.23	6.84	6.64	6.57	6.42
DSO	days	56.75	53.34	53.95	53.03	55.31	53.78	55.35	54.64	55.37	54.33	56.77	55.38	47.46	47.54	46.48	50.49	53.37	54.97	55.54	56.87

December 31, 2023 calculation

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

To analyze the Days of Sales Outstanding (DSO) of Ametek Inc, we will look at the trend over the past eight quarters. DSO is a measure of how long it takes for a company to collect revenue after a sale is made.

Looking at the data, we observe that the DSO for Ametek Inc has fluctuated over the past two years. In Q4 2023, the DSO was 56.04 days, which is slightly higher compared to the previous quarter but still within the range observed in the past eight quarters.

Overall, the DSO has been relatively stable, hovering around the mid-50s range over the past two years. This indicates that Ametek Inc typically collects its sales revenue within a reasonable timeframe. However, it is important to monitor any significant increases in DSO as it could indicate potential issues with accounts receivable management or deteriorating customer credit quality.

In conclusion, the DSO trend for Ametek Inc suggests effective management of accounts receivable, but it would be beneficial to assess the company's collection policies and practices to ensure optimal cash flow efficiency.