Avantor Inc (AVTR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.56 | 6.06 | 6.17 | 6.04 | 5.74 | |
| DSO | days | 55.66 | 60.26 | 59.20 | 60.39 | 63.56 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.56
= 55.66
To analyze Avantor Inc's Days Sales Outstanding (DSO) over the period from December 31, 2020, to December 31, 2024, we observe a decreasing trend. DSO decreased from 63.56 days as of December 31, 2020, to 55.66 days as of December 31, 2024.
A decreasing trend in DSO indicates that Avantor Inc has been improving its efficiency in collecting accounts receivable. This could be due to more effective credit policies, better invoicing procedures, or enhanced collection efforts.
The improvement in DSO over the years suggests that Avantor Inc is managing its receivables effectively, converting credit sales into cash more efficiently. Lower DSO means the company is collecting payment from customers faster, which can positively impact the company's cash flow and working capital management.
Overall, the decreasing trend in DSO for Avantor Inc is a positive indicator of the company's ability to manage its accounts receivable effectively and efficiently over the analyzed period.
Peer comparison
Dec 31, 2024