Astec Industries Inc (ASTE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.73 | 7.33 | 7.73 | 8.89 | 9.70 | |
| DSO | days | 41.83 | 49.82 | 47.22 | 41.06 | 37.61 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.73
= 41.83
The days of sales outstanding (DSO) for Astec Industries Inc. has shown variability over the past five years. In 2019, the DSO was 38.96 days, which increased to 42.97 days in 2020. There was a further increase in 2021 to 49.10 days before slightly decreasing to 49.72 days in 2022. However, in 2023, the DSO decreased to 41.65 days.
A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficient working capital management. On the other hand, a higher DSO may indicate delays in collecting receivables, which can be a liquidity concern.
It is essential for Astec Industries Inc. to closely monitor its DSO trend and investigate any significant changes to ensure efficient cash flow management and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2023