Air Products and Chemicals Inc (APD)

Days of sales outstanding (DSO)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		6.00	6.43	6.87	6.70	6.47
DSO	days	60.86	56.78	53.16	54.50	56.45

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.00
= 60.86

The Days of Sales Outstanding (DSO) metric for Air Products and Chemicals Inc has shown a fluctuating trend over the past five years. In fiscal year 2024, the DSO stood at 60.86 days, showing a slight increase compared to the previous year where it was 56.78 days. This indicates that the company took slightly longer to collect its accounts receivable in 2024.

Comparing the DSO figures over the past five years, we can observe an overall increasing trend from 2020 to 2024, with some fluctuations along the way. The DSO was at its lowest in 2022 at 53.16 days, showing efficient management of accounts receivable, while it was highest in 2017 at 60.86 days.

Being mindful of the DSO trend can provide insights into the company's ability to collect outstanding receivables. A decreasing DSO generally signals an improvement in collection efficiency, whereas an increasing DSO could indicate potential issues with credit policies or collection procedures. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Air Products and Chemicals Inc's performance in managing its accounts receivable.