Amphastar P (AMPH)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.37	5.61	5.62	5.56	5.30
DSO	days	67.96	65.11	64.96	65.70	68.86

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.37
= 67.96

Based on the data provided, the days of sales outstanding (DSO) for Amphastar P have shown a slight improvement over the years, declining from 68.86 days as of December 31, 2020, to 65.70 days as of December 31, 2021. This trend continued with DSO further decreasing to 64.96 days by December 31, 2022, and maintaining a relatively stable level around 65 days in the following years.

A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally a positive sign as it reflects efficient credit control and effective management of receivables. The consistent improvement in DSO over the years suggests that Amphastar P is efficiently managing its accounts receivable and converting sales into cash in a timely manner.

However, it is important for the company to continue monitoring and managing its DSO to ensure that it remains at an optimal level. This will help maintain healthy cash flow and liquidity position, which are essential for the financial stability and growth of the business.