Allegheny Technologies Incorporated (ATI)
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 | 6.68 | 5.88 | 5.67 | 5.43 | 6.41 | 5.01 | 4.95 | 4.95 | 5.63 | 5.39 | 7.09 | 6.37 | 8.57 | 8.51 | 7.84 | 6.98 | 7.56 | 7.09 | 7.16 | 7.21 | |
| DSO | days | 54.65 | 62.03 | 64.39 | 67.24 | 56.98 | 72.86 | 73.73 | 73.76 | 64.86 | 67.67 | 51.52 | 57.33 | 42.60 | 42.89 | 46.57 | 52.27 | 48.26 | 51.47 | 50.95 | 50.65 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.68
= 54.65
To analyze the Days of Sales Outstanding (DSO) for ATI Inc, we calculated the average DSO for each quarter based on the data provided.
The trend of the DSO over the past eight quarters indicates that ATI Inc has been able to reduce its DSO from a high of 69.68 days in Q3 2022 to a low of 54.66 days in Q4 2023. This reduction in DSO reflects the company's ability to collect its accounts receivable more efficiently over time.
A lower DSO indicates that ATI Inc is collecting payments from its customers quicker, which improves its cash flow position and liquidity. This could be a result of more efficient collections processes or better credit management practices.
However, it is important to note that there was a slight increase in DSO from Q3 2023 to Q4 2023, which may warrant further investigation into the reasons behind this uptick. It could be due to seasonal factors, changes in customer payment behavior, or other operational issues that need to be addressed.
Overall, the decreasing trend of DSO for ATI Inc is a positive sign of effective accounts receivable management, but monitoring any fluctuations in this metric is essential to ensure sustained efficiency in collecting payments from customers.