AptarGroup Inc (ATR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.15 | 4.91 | 4.81 | 5.17 | 5.12 | |
| DSO | days | 70.94 | 74.38 | 75.89 | 70.65 | 71.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.15
= 70.94
The Days Sales Outstanding (DSO) of Aptargroup Inc. has fluctuated over the past five years. In 2023, the DSO decreased to 70.94 days from 74.38 days in 2022, showcasing an improvement in the collection efficiency of accounts receivable. This reduction in DSO indicates that the company is collecting its sales revenues more quickly than in the previous year.
Comparing the DSO to earlier years, we see a similar trend where the DSO was slightly higher in 2021 at 75.93 days and 71.27 days in 2019. The lower DSO in 2023 compared to 2021 and 2019 may be interpreted positively as it suggests that Aptargroup Inc. has enhanced its credit and collection policies, leading to a faster conversion of accounts receivable into cash.
However, it is crucial to consider the industry and economic factors that could influence DSO levels. Overall, a decreasing trend in DSO is generally indicative of effective accounts receivable management, but further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Aptargroup Inc.'s performance in this area.
Peer comparison
Dec 31, 2023