Avery Dennison Corp (AVY)
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 | 5.85 | 5.75 | 5.95 | — | 6.52 | — | — | — | 5.86 | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | 62.43 | 63.53 | 61.33 | — | 56.02 | — | — | — | 62.31 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.85
= 62.43
The Days Sales Outstanding (DSO) ratio for Avery Dennison Corp has shown some variability over the recent quarters. As of Dec 31, 2023, the DSO stands at 62.43 days, indicating the average number of days it takes for the company to collect revenue from its credit sales. Comparing this figure to the DSO of 56.02 days as of Dec 31, 2022, there is a slight increase in the collection period, suggesting a potential lag in accounts receivable turnover.
The trend in DSO over the past few quarters shows a fluctuation, with values ranging from 56.02 days to 63.53 days. The absence of data for some quarters limits a more detailed trend analysis. It is essential for the company to monitor and manage its DSO effectively to optimize cash flow and working capital efficiency.
A high or increasing DSO can indicate potential issues in collecting receivables promptly, which may lead to cash flow constraints. Conversely, a decreasing DSO could signify improved collection processes and efficient credit management. Tracking DSO over time provides insights into the company's credit policies, customer payment behaviors, and overall liquidity management.
Peer comparison
Dec 31, 2023