The Andersons Inc (ANDE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 19.34 | 13.74 | 14.92 | 12.12 | 14.63 | |
| DSO | days | 18.87 | 26.57 | 24.46 | 30.12 | 24.95 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.34
= 18.87
Over the past five years, Andersons Inc.'s Days of Sales Outstanding (DSO) has shown a fluctuating trend. The DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
In 2023, the DSO improved significantly to 18.87 days from 26.31 days in 2022. This indicates that Andersons Inc. managed its accounts receivable more efficiently, collecting revenue from sales at a faster pace.
Comparing 2023 to earlier years, Andersons Inc. has shown progress in DSO management. In 2021 and 2020, the DSO was higher at 24.17 days and 29.34 days, respectively. The decreasing trend in DSO over the years suggests that the company has become more effective in its credit and collections policies.
The DSO of 18.87 days in 2023 is also lower than the DSO of 23.96 days in 2019, indicating ongoing improvements in managing accounts receivable. Lower DSO values generally imply faster cash conversion and better liquidity for the company.
Overall, the decreasing trend in Andersons Inc.'s Days of Sales Outstanding reflects an improvement in the efficiency of its accounts receivable management over the five-year period, potentially signaling better cash flow and working capital management for the company.
Peer comparison
Dec 31, 2023