Axalta Coating Systems Ltd (AXTA)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 4.23 | 4.11 | 4.58 | 4.71 | 4.30 | |
| DSO | days | 86.34 | 88.72 | 79.76 | 77.48 | 84.94 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.23
= 86.34
To analyze Axalta Coating Systems Ltd's days of sales outstanding (DSO) based on the provided data, we observe the following trend:
- As of December 31, 2020, the DSO stood at 84.94 days.
- By December 31, 2021, the DSO had decreased to 77.48 days, indicating an improvement in managing accounts receivable.
- In the following year, as of December 31, 2022, the DSO increased slightly to 79.76 days, possibly suggesting a change in the collection efficiency.
- By the end of December 31, 2023, the DSO further increased to 88.72 days, signaling potential challenges in collecting receivables within the same period.
- As of December 31, 2024, the DSO remained high at 86.34 days, indicating a continued struggle in collecting outstanding sales in a timely manner.
Overall, the trend in Axalta Coating Systems Ltd's DSO over the years shows fluctuations and increases, which may imply challenges in managing accounts receivable efficiently and promptly collecting payments from customers. It is essential for the company to focus on optimizing its credit policies and collection processes to improve cash flow and overall financial health.
Peer comparison
Dec 31, 2024