Api Group Corp (APG)

The analysis of Api Group Corp’s days of sales outstanding (DSO) over the period from December 31, 2020, to December 31, 2024, reveals a trend of increasing receivables collection periods. Specifically, the DSO was 79.47 days at the end of 2020, indicating that the company took approximately 79.5 days to collect its receivables. This figure rose to 91.16 days by the end of 2021, representing an increase of approximately 15.7 days year-over-year. The upward trend continued into 2022, with the DSO reaching 98.62 days, an increase of about 7.5 days from 2021, signaling a further elongation in receivables turnover.

In 2023, the DSO slightly decreased to 96.47 days, reflecting a marginal improvement in receivables collection efficiency compared to the previous year, though still remaining substantially elevated relative to 2020. By the end of 2024, the DSO experienced a slight upward movement again, reaching 98.66 days, nearly identical to the 2022 level, thus maintaining a period of around 98 to 99 days for collecting receivables.

Overall, the data indicates that Api Group Corp’s receivables have become more difficult or take longer to collect over the given period. The consistency of a DSO approaching or exceeding 98 days suggests the company may be experiencing either longer credit terms granted to customers, delays in collection processes, or a shift in the credit risk profile of its customer base. This prolonged collection period has implications for the company’s working capital management and cash flow, potentially requiring closer monitoring and strategic adjustments to reduce collection times and improve liquidity.

Peer comparison

Dec 31, 2024