AptarGroup Inc (ATR)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 5.44 5.15 4.91 4.81 5.17
DSO days 67.04 70.94 74.38 75.89 70.65

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.44
= 67.04

Days Sales Outstanding (DSO) is a key ratio that reflects the average number of days it takes a company to collect outstanding receivables. A lower DSO indicates faster collection of receivables, which is favorable as it allows the company to convert sales into cash more quickly.

Analyzing AptarGroup Inc's DSO over the past five years, we observe a fluctuating trend:

- As of December 31, 2020, the DSO stood at 70.65 days, indicating that on average, it took the company about 70.65 days to collect outstanding receivables.
- By December 31, 2021, the DSO had increased to 75.89 days, suggesting a slight delay in collecting receivables compared to the previous year.
- The DSO decreased to 74.38 days as of December 31, 2022, showing some improvement in the collection process.
- Subsequently, by December 31, 2023, the DSO further declined to 70.94 days, approaching the level seen in 2020.
- As of the latest available data on December 31, 2024, the DSO dropped to 67.04 days, indicating a significant improvement in the company's ability to collect receivables more efficiently.

Overall, AptarGroup Inc's DSO has displayed fluctuations over the past five years, with a general trend of improvement towards quicker collection of outstanding receivables. This suggests that the company may have implemented more effective credit and collection policies or maintained strong relationships with customers to ensure timely payments. It is essential for AptarGroup Inc to continue monitoring and managing its DSO to optimize cash flow and operational efficiency.