Avient Corp (AVNT)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		7.57	8.66	7.39	6.13	8.49
DSO	days	48.24	42.13	49.42	59.53	42.97

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.57
= 48.24

Based on the data provided, Avient Corp's Days Sales Outstanding (DSO) have exhibited some fluctuation over the past five years. The trend shows that DSO was 46.44 days at the end of 2023, a slight decrease from 47.34 days in 2022. This indicates that, on average, it takes Avient Corp approximately 46.44 days to collect its accounts receivable.

Comparing this figure to previous years, there was a gradual increase in DSO from 2019 to 2020, reaching a peak of 58.16 days, before decreasing in 2021 and further decreasing in 2022 and 2023. The reduction in DSO over the past two years suggests an improvement in Avient Corp's efficiency in collecting payments from customers, which could lead to better cash flow management and liquidity.

Overall, while the trend has shown variability, the recent decline in DSO is a positive sign for Avient Corp's working capital management. Tracking DSO over time can provide insights into the company's accounts receivable performance and its ability to convert credit sales into cash effectively.