Allegheny Technologies Incorporated (ATI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.48 | 6.21 | 5.63 | 8.27 | 7.36 | |
| DSO | days | 56.32 | 58.81 | 64.83 | 44.15 | 49.58 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.48
= 56.32
The Days Sales Outstanding (DSO) for ATI Inc has shown some fluctuations over the past five years. In 2023, the DSO stands at 54.66 days, a slight decrease from 55.11 days in 2022. This indicates that the company takes approximately 54.66 days to collect revenue from customers, which is a positive sign of efficient accounts receivable management.
Comparing to previous years, the DSO was higher in 2021 at 61.27 days but improved in 2020 at 42.32 days and in 2019 at 49.06 days. The decreasing trend in DSO in recent years suggests a potential improvement in the company's receivables collection process and liquidity position.
It is important for ATI Inc to continue monitoring and managing its DSO to ensure timely collection of receivables and maintain healthy cash flow levels. Overall, the current DSO of 54.66 days indicates a positive trend in managing accounts receivable efficiently.