Avient Corp (AVNT)

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		7.57	8.28	7.27	8.61	10.51	8.98	6.57	6.44	7.39	6.48	6.03	5.65	6.17	5.54	8.51	7.68	9.45	8.94	7.33	7.26
DSO	days	48.24	44.09	50.24	42.39	34.73	40.63	55.52	56.72	49.42	56.31	60.56	64.61	59.17	65.90	42.89	47.51	38.61	40.84	49.79	50.31

December 31, 2023 calculation

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

The Days Sales Outstanding (DSO) ratio for Avient Corp has demonstrated fluctuations over the past several quarters. In Q4 2023, the DSO decreased to 46.44 days from 66.41 days in Q3 2023. This indicates that the company was able to collect its accounts receivable more quickly in Q4 compared to the previous quarter, which can be a positive sign for cash flow management.

However, when comparing Q4 2023 to the same quarter in the prior year (Q4 2022), there was a slight increase in DSO from 47.34 days to 46.44 days. This may suggest a longer collection period for accounts receivable compared to the previous year.

Looking at the trend over the past eight quarters, we observe fluctuations in DSO, with some quarters showing improvements in collection efficiency while others indicate slower collection times. It would be advisable for Avient Corp to monitor and analyze the reasons behind these fluctuations to ensure timely collection of receivables and maintain a healthy cash flow position.