Amphastar P (AMPH)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		5.37	5.18	5.42	4.90	5.61	5.05	5.17	5.15	5.62	6.29	5.90	6.22	5.56	5.29	5.66	4.72	5.30	6.44	6.70	5.66
DSO	days	67.96	70.44	67.28	74.55	65.11	72.23	70.66	70.83	64.96	58.04	61.85	58.68	65.70	69.05	64.53	77.27	68.86	56.68	54.49	64.45

December 31, 2024 calculation

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

The Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes a company to collect payment after making a sale. A lower DSO typically indicates that a company collects its accounts receivable more quickly, which is a positive sign of efficient cash flow management.

Analyzing the DSO trend of Amphastar P based on the provided data reveals fluctuating values over the specified periods. The trend can be summarized as follows:

1. The DSO for March 31, 2020, was 64.45 days, which decreased to 54.49 days by June 30, 2020, indicating improved efficiency in collecting payments.

2. The DSO gradually increased to 77.27 days by March 31, 2021, suggesting a potential delay in collecting receivables.

3. From March 31, 2021, to December 31, 2021, the DSO fluctuated within a range but remained slightly above 60 days.

4. The DSO decreased to 58.68 days by March 31, 2022, showing an improvement in receivables collection efficiency.

5. The DSO continued to fluctuate around 60 days for the following quarters, indicating consistent performance in managing accounts receivable.

6. By December 31, 2024, the DSO was reported at 67.96 days, suggesting a slight increase in the average collection period compared to the earlier periods.

Overall, the DSO trend of Amphastar P shows variability but generally remains within a reasonable range. It is important for the company to closely monitor and manage its DSO to ensure efficient cash flow operations and optimize working capital management.