Aptiv PLC (APTV)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.26 | 4.79 | 5.15 | 4.33 | 5.07 | |
| DSO | days | 69.45 | 76.13 | 70.86 | 84.25 | 71.92 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.26
= 69.45
Aptiv PLC's days of sales outstanding (DSO) have shown a fluctuating trend over the past five years. The DSO decreased from 71.92 days in 2019 to 70.86 days in 2021, indicating a relatively efficient collection process in 2021. However, there was an increase in 2022 to 76.13 days, suggesting a slower collection of receivables.
In 2023, Aptiv PLC managed to improve its collection efficiency further, as reflected in a decrease in DSO to 69.45 days. A decreasing DSO generally signifies a better ability to collect receivables promptly, which is a positive indicator of liquidity and effective credit management.
Overall, Aptiv PLC's DSO performance in 2023 improved compared to the previous two years, indicating enhanced receivables management and potentially stronger cash flow conversion. However, monitoring DSO along with other liquidity and working capital metrics is essential to ensure sustained financial health and operational efficiency.
Peer comparison
Dec 31, 2023