Archrock Inc (AROC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.17 | 5.71 | 6.71 | 7.43 | 6.03 | |
| DSO | days | 50.94 | 63.97 | 54.44 | 49.12 | 60.56 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.17
= 50.94
Archrock Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster cash collection and better liquidity management.
From 2019 to 2023, Archrock Inc's DSO trend has shown fluctuations. In 2019, the DSO was 54.77 days, which decreased to 43.56 days in 2020, indicating an improvement in the company's collection efficiency. However, in 2021, the DSO increased to 49.01 days and then further increased to 59.37 days in 2022, suggesting a potential worsening in the company's ability to collect receivables promptly.
In 2023, Archrock Inc managed to lower its DSO to 45.73 days, showing a positive turnaround in its collection efforts compared to the previous year. This reduction in DSO may imply the company's focus on improving its receivables management and working capital efficiency.
Overall, while there have been fluctuations in Archrock Inc's DSO over the years, the recent decrease in 2023 is a positive signal of enhanced cash collection practices, which could lead to improved liquidity and financial performance in the future.
Peer comparison
Dec 31, 2023