Air Products and Chemicals Inc (APD)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Receivables turnover		6.43	6.87	6.70	6.47	7.08
DSO	days	56.78	53.16	54.50	56.45	51.57

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.43
= 56.78

To assess Air Products & Chemicals Inc.'s days of sales outstanding (DSO) over the past five years, we can observe a general decreasing trend in DSO from 56.11 days in 2020 to 51.52 days in 2023. This indicates that the company has been collecting its accounts receivable more efficiently, resulting in a decrease in the number of days it takes to collect sales from customers.

The reduction in DSO suggests that Air Products & Chemicals Inc. has improved its credit and collection policies or has experienced better quality of receivables. A lower DSO can also indicate effective management of working capital and a positive impact on cash flow.

It's important to note that the trend in DSO should be analyzed alongside other financial metrics to provide a comprehensive assessment of the company's financial performance and efficiency in managing its receivables.