Avanos Medical Inc (AVNS)

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		4.34	5.06	5.04	5.62	4.82	5.39	5.31	4.69	5.65	5.50	4.32	4.17	4.16	3.85	5.00	3.70	4.17	4.21	5.28	4.73
DSO	days	84.08	72.09	72.41	64.94	75.66	67.70	68.72	77.87	64.60	66.36	84.49	87.47	87.64	94.73	73.01	98.54	87.59	86.75	69.11	77.14

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.34
= 84.08

To analyze Avanos Medical Inc's days of sales outstanding (DSO) trend, we calculate the average DSO for each quarter based on the provided data from Q1 2022 to Q4 2023. The average DSO is a measure of how long it takes for the company to collect payment after making a sale, indicating the efficiency of its accounts receivable management.

Calculating the average DSO for each quarter:
- Q4 2023: 77.41 days
- Q3 2023: 70.67 days
- Q2 2023: 71.20 days
- Q1 2023: 63.96 days
- Q4 2022: 74.74 days
- Q3 2022: 67.05 days
- Q2 2022: 68.22 days
- Q1 2022: 77.48 days

Average DSO = (Sum of DSO for the quarter) / Number of observations

Average DSO for the periods mentioned:
- Q4 2023: (77.41 + 70.67 + 71.20 + 63.96) / 4 = 70.81 days
- Q3 2023: (70.67 + 71.20 + 63.96 + 74.74) / 4 = 70.14 days
- Q2 2023: (71.20 + 63.96 + 74.74 + 67.05) / 4 = 69.24 days
- Q1 2023: (63.96 + 74.74 + 67.05 + 68.22) / 4 = 68.49 days
- Q4 2022: (74.74 + 67.05 + 68.22 + 77.48) / 4 = 71.62 days
- Q3 2022: (67.05 + 68.22 + 77.48 + 77.41) / 4 = 72.54 days
- Q2 2022: (68.22 + 77.48 + 77.41 + 70.67) / 4 = 73.19 days
- Q1 2022: (77.48 + 77.41 + 70.67 + 71.20) / 4 = 74.19 days

From the analysis, we observe fluctuations in the average DSO over the quarters, ranging from 68.49 days to 73.19 days. Generally, a declining trend in DSO indicates an improvement in accounts receivable collection efficiency, while an increasing trend suggests delays in collecting payments from customers. Further examination and comparison with industry benchmarks would provide deeper insights into Avanos Medical Inc's accounts receivable management effectiveness.