Amentum Holdings Inc. (AMTM)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | 3.47 | — | — | — | |
| DSO | days | — | 105.04 | — | — | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Based on the provided financial data for Amentum Holdings Inc., the days of sales outstanding (DSO) metric for the period ending September 30, 2024, is 105.04 days. DSO represents the average number of days it takes for a company to collect revenue after making a sale.
A DSO of 105.04 days suggests that, on average, Amentum Holdings Inc. takes approximately 105 days to collect payments from its customers for goods or services sold. A lower DSO indicates that the company is efficient in collecting payments, while a higher DSO could signify potential issues with accounts receivable management or long payment cycles.
It is important for the company to monitor and manage its DSO to ensure optimal cash flow and liquidity. A higher DSO could tie up funds that could otherwise be invested elsewhere, impacting the company's financial health. Analyzing trends in DSO over time can also provide insights into the company's sales and collection practices.
Peer comparison
Dec 31, 2024