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.
Peer comparison
Dec 31, 2023