American Axle & Manufacturing (AXL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		7.43	7.07	6.76	5.94	8.01
DSO	days	49.14	51.59	53.99	61.46	45.57

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.43
= 49.14

American Axle & Manufacturing Holdings Inc's Days of Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's accounts receivable management efficiency. The DSO decreased from 45.57 days in 2019 to 49.14 days in 2023.

This suggests that, on average, it took the company 49.14 days to collect its accounts receivable at the end of 2023, down from 61.46 days in 2020. A lower DSO indicates that the company is collecting payments from customers more quickly, which could result from more effective credit management practices or improved invoicing and collection processes.

Overall, the decreasing trend in DSO reflects positively on American Axle & Manufacturing's liquidity and operational efficiency, as it indicates a shorter time between the company's sale of goods and services and the receipt of cash from customers. However, it is essential to continue monitoring this metric to ensure that the trend remains favorable and does not indicate any underlying issues in the company's receivables management.