Avery Dennison Corp (AVY)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.83 | 6.52 | 5.86 | 5.59 | 5.76 | |
| DSO | days | 62.63 | 56.02 | 62.31 | 65.33 | 63.35 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.83
= 62.63
To analyze the Days Sales Outstanding (DSO) of Avery Dennison Corp over the past five years, we observe a fluctuating trend.
In 2019, the DSO stood at 63.35 days and decreased slightly to 62.31 days in 2020. However, in 2021, there was a slight increase to 65.33 days before dropping to 56.02 days in 2022. The DSO then increased again to 62.63 days in 2023.
This trend indicates that Avery Dennison Corp's DSO has been somewhat volatile over the years, with fluctuations occurring annually. A lower DSO signifies that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficiency. Conversely, a higher DSO may indicate potential issues with collections or sales credit terms.
Further analysis would be required to understand the specific factors driving these fluctuations and to determine if any changes in the company's accounts receivable management practices are warranted to optimize cash flow and working capital efficiency.
Peer comparison
Dec 31, 2023