Avantor Inc (AVTR)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019
Receivables turnover		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	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

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.05
= 60.37

Days Sales Outstanding (DSO) is a key ratio used to measure how efficiently a company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally positive as it improves the liquidity and cash flow of the business.

Analyzing the DSO trend of Avantor Inc from December 2019 to June 2024, we observe fluctuations in the metric over this period. The DSO has ranged between 58.95 days to 65.85 days, with an average DSO of approximately 61 days.

In the latest period, as of June 30, 2024, the DSO stands at 60.37 days, which is slightly higher compared to the previous quarter but relatively consistent with the historical average. The stability in DSO over time indicates that Avantor Inc has been effectively managing its accounts receivable and maintaining a balance between credit sales and collections.

It is worth noting the slight increase in DSO from the prior quarter to the current period, which could be indicative of a potential slowdown in customer payments. Management may need to monitor this trend closely to ensure that any increase in DSO does not negatively impact the company's cash flow and working capital management.

Overall, the DSO analysis suggests that Avantor Inc has been maintaining a reasonable level of efficiency in collecting receivables, ensuring a steady influx of cash into the business.