Amphenol Corporation (APH)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.63 | 4.79 | 4.80 | 4.43 | 4.41 | |
| DSO | days | 78.84 | 76.12 | 76.09 | 82.38 | 82.84 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.63
= 78.84
Amphenol Corporation's Days Sales Outstanding (DSO) has shown a steady trend of improvement over the years, reflecting efficient management of accounts receivable. As of December 31, 2020, the DSO stood at 82.84 days, indicating that, on average, it took the company approximately 82.84 days to collect revenue from its customers.
By December 31, 2021, the DSO decreased slightly to 82.38 days, suggesting a continued focus on timely collections. Subsequently, the DSO saw a more significant drop to 76.09 days by December 31, 2022, and remained relatively stable at 76.12 days by the end of 2023. This demonstrates the company's effectiveness in managing its accounts receivable and improving cash flow.
As of December 31, 2024, the DSO slightly increased to 78.84 days. While this uptick may warrant monitoring, the overall trend indicates that Amphenol Corporation has been successful in efficiently converting sales into cash. A lower DSO signifies a shorter collection period, which can enhance liquidity and working capital management for the company.