Avanos Medical Inc (AVNS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		4.11	4.82	5.65	4.16	4.17
DSO	days	88.72	75.66	64.60	87.64	87.59

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.11
= 88.72

Avanos Medical Inc's Days Sales Outstanding (DSO) has shown variability over the last five years. In 2023, the DSO stood at 77.41 days, a slight increase from the previous year's 74.74 days. Comparing to 2021, there was a noticeable increase in DSO from 64.31 days, indicating a potential delay in collecting revenue from sales. However, a reduction in DSO compared to 2020 suggests an improvement in the company's collection efficiency. Despite fluctuations, maintaining DSO at a reasonable level is crucial for ensuring timely receipt of payments and managing cash flow effectively.