Aptiv PLC (APTV)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		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	5.07	4.91	4.80	4.78
DSO	days	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	71.92	74.41	75.99	76.35

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.26
= 69.45

Days Sales Outstanding (DSO) is a measure of how many days, on average, a company takes to collect revenue after a sale has been made. It indicates the efficiency of a company in collecting its accounts receivable. A lower DSO is generally preferred as it suggests faster cash conversion and better liquidity.

Analyzing the DSO trend of Aptiv PLC over the past eight quarters, we observe a fluctuating pattern. In Q4 2023, the DSO was 69.45 days, showing a decrease from the previous quarter Q3 2023 (71.33 days). This reduction is a positive indicator, suggesting that Aptiv is collecting revenue more efficiently.

Comparing the current DSO to the same quarter a year ago, we also see an improvement. In Q4 2022, the DSO was higher at 76.13 days, indicating that Aptiv has made progress in streamlining its accounts receivable processes.

Despite the recent improvements, it is essential to note that Aptiv's DSOs have been hovering around the mid-70s range over the past two years, signaling that further efforts may be needed to optimize the collection of receivables.

In conclusion, while Aptiv PLC has shown some positive developments in reducing its DSO in the most recent quarter, the overall trend suggests the need for continued focus on enhancing accounts receivable management to further improve liquidity and cash flow efficiency.