Smith AO Corporation (AOS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.44 | 6.44 | 5.57 | 4.94 | 5.06 | |
| DSO | days | 56.64 | 56.65 | 65.51 | 73.94 | 72.16 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.44
= 56.64
The days sales outstanding (DSO) for A.O. Smith Corp. have shown a fluctuating trend over the past five years. In 2023, the DSO stood at 56.46 days, slightly lower than the previous year's figure of 56.51 days. This suggests that the company has been able to collect its accounts receivable more efficiently in the most recent period.
Comparing the DSO to previous years, there has been a general downward trend since 2020 when the DSO was notably higher at 73.75 days. This improvement indicates that A.O. Smith Corp. has been managing its accounts receivable more effectively over the past couple of years.
Despite the fluctuations, the company's DSO has remained within a relatively narrow range between approximately 56 to 74 days over the past five years. This indicates that A.O. Smith Corp. has maintained stability in its collections process, although there may be room for further efficiency improvements.
Overall, the trend in the days sales outstanding metric for A.O. Smith Corp. suggests that the company has been making efforts to streamline its accounts receivable management, which is a positive indicator of its financial health and operational efficiency.
Peer comparison
Dec 31, 2023