Avantor Inc (AVTR)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		6.56	6.27	6.05	6.08	6.06	6.12	5.90	5.75	6.17	6.19	5.99	5.61	6.04	6.14	5.55	5.54	5.74	5.91	6.13	5.84
DSO	days	55.66	58.21	60.37	60.05	60.26	59.64	61.85	63.49	59.20	58.95	60.95	65.03	60.39	59.48	65.78	65.85	63.56	61.77	59.59	62.51

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.56
= 55.66

Days Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is managing its accounts receivable. A lower DSO indicates that a company is collecting payments from its customers more quickly, which is generally viewed as positive.

Analyzing the DSO trend of Avantor Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes for the company to collect revenue from its sales. The DSO values range from a low of 55.66 days on December 31, 2024, to a high of 65.85 days on March 31, 2021.

Overall, the DSO trend for Avantor Inc shows some variability but indicates a general improvement in the collection efficiency of the company. The DSO decreased from 62.51 days on March 31, 2020, to 55.66 days on December 31, 2024. This trend suggests that Avantor Inc has been more efficient in converting its sales into cash over the analyzed period.

It is important for Avantor Inc to continue monitoring and managing its DSO to ensure timely collection of accounts receivable and maintain healthy cash flows. By optimizing its credit policies and collection processes, the company can further improve its working capital management and financial performance.