AdvanSix Inc (ASIX)

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		9.14	10.61	11.05	11.48	10.50	9.78	7.84	7.98	9.38	9.32	8.64	8.18	8.50	10.28	13.79	10.45	12.16	12.42	11.10	12.54
DSO	days	39.91	34.41	33.04	31.79	34.78	37.34	46.58	45.74	38.90	39.15	42.27	44.59	42.97	35.50	26.46	34.94	30.02	29.40	32.90	29.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.14
= 39.91

AdvanSix Inc's Days Sales Outstanding (DSO) has shown a declining trend over the past four quarters, indicating that the company is improving its ability to collect payments from customers in a timely manner. In Q4 2023, the DSO was 39.71 days, higher than the previous quarter but still lower than the values seen in Q2 2022 and Q1 2022. This suggests that the company may be facing some challenges in collecting receivables compared to the previous quarter.

Despite the slight increase in Q4 2023, the DSO for the most recent quarters (Q3 2023, Q2 2023, and Q1 2023) has been relatively low, ranging from 31.75 to 34.30 days. This indicates that AdvanSix Inc has been efficient in managing its accounts receivable and converting credit sales into cash quickly during these periods.

Comparing the current DSO levels to the figures from the same quarters in the previous year (Q4 2022, Q3 2022, Q2 2022, and Q1 2022), there has been a notable improvement in the collection period. The DSO in Q4 2023 is lower than the corresponding quarter in 2022, suggesting that the company has enhanced its collection processes and is effectively managing its receivables.

Overall, while there was a slight uptick in DSO in Q4 2023, AdvanSix Inc has shown a positive trend in managing its accounts receivable efficiently, as evidenced by the declining DSO figures over the past year. This implies that the company is effectively managing its credit sales and maintaining healthy cash flows.