AdvanSix Inc (ASIX)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.14	10.49	9.38	8.47	12.10
DSO	days	39.93	34.79	38.92	43.11	30.17

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.14
= 39.93

To analyze AdvanSix Inc's days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend in the collection period for accounts receivable. The DSO metric measures how long, on average, it takes for the company to collect its outstanding receivables from customers.

In 2019, AdvanSix had a relatively low DSO of 30.01 days, indicating efficient management of accounts receivable collections. However, this number increased in subsequent years, reaching 42.82 days at the end of 2020. This rise suggests a potential delay in collecting payments from customers compared to the previous year.

The DSO decreased in 2021 to 38.80 days but then increased again in 2022 to 34.74 days before declining to 39.71 days in 2023. These fluctuations in DSO could be influenced by various factors such as changes in the company's credit policies, customer payment behaviors, or economic conditions impacting the industry.

Overall, the trend in AdvanSix Inc's DSO indicates some variability in the efficiency of collecting accounts receivable over the past five years. Monitoring this metric closely can provide insights into the company's effectiveness in managing cash flow and working capital.