Smith AO Corporation (AOS)
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 | 7.05 | 6.97 | 6.04 | 6.60 | 6.44 | 6.45 | 6.32 | 6.36 | 6.44 | 6.75 | 6.19 | 6.15 | 5.57 | 5.41 | 5.30 | 5.65 | 4.94 | 4.90 | 5.37 | 5.48 | |
| DSO | days | 51.77 | 52.35 | 60.45 | 55.33 | 56.64 | 56.62 | 57.73 | 57.41 | 56.65 | 54.11 | 58.96 | 59.32 | 65.51 | 67.46 | 68.81 | 64.55 | 73.91 | 74.54 | 67.93 | 66.58 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.05
= 51.77
The Days Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO generally indicates a more efficient collection process, while a higher DSO suggests potential issues with collecting receivables promptly.
Analyzing the DSO trend of Smith AO Corporation over the past few years, we observe fluctuations in the metric. From March 31, 2020, to December 31, 2024, the DSO ranged from 51.77 days to 74.54 days, showing variability in the time taken to collect revenue.
In reviewing the data, there is a downward trend in DSO from 2020 to 2024, with occasional spikes or dips along the way. The decreasing trend in DSO indicates that Smith AO Corporation has been improving its collection process and shortening the average time it takes to convert sales into cash.
Overall, a decreasing DSO trend is a positive sign as it suggests improved efficiency in receivables management. However, it is essential for the company to monitor and manage its receivables effectively to ensure timely collection of outstanding amounts and maintain healthy cash flows.
Peer comparison
Dec 31, 2024