Aptiv PLC (APTV)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		5.54	5.01	5.15	5.14	5.26	5.12	4.84	4.78	4.79	4.71	4.85	4.76	5.15	5.31	5.37	4.55	4.33	4.26	5.90	5.46
DSO	days	65.86	72.83	70.92	71.06	69.45	71.33	75.36	76.37	76.13	77.50	75.26	76.67	70.86	68.69	68.03	80.25	84.25	85.61	61.84	66.89

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.54
= 65.86

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes a company to collect payment after making a sale. For Aptiv PLC, the DSO has shown some fluctuations over the period from March 31, 2020, to December 31, 2024.

The DSO for Aptiv PLC ranged from a low of 61.84 days on June 30, 2020, to a high of 85.61 days on September 30, 2020. This indicates that the company took fewer days to collect payment from customers in June 2020 compared to September 2020. However, it's important to note that a lower DSO is generally favorable as it implies faster cash conversion from sales.

Overall, Aptiv's DSO trended downwards in the following quarters but experienced slight fluctuations. By December 31, 2024, the DSO had decreased to 65.86 days, indicating a relatively efficient collections process. This suggests that Aptiv is managing its accounts receivable effectively and collecting payments from customers in a timely manner.

Analyzing DSO can provide valuable insights into a company's liquidity and efficiency in managing its accounts receivable. Lower DSO values generally indicate better performance in collecting receivables, while higher values may suggest potential issues with credit policies or collections processes. Investors and analysts use DSO as a key indicator of a company's financial health and its ability to effectively manage its working capital.