Axalta Coating Systems Ltd (AXTA)
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 | 4.11 | 3.94 | 3.98 | 4.27 | 4.58 | 4.32 | 4.21 | 4.40 | 4.71 | 4.15 | 4.14 | 4.23 | 4.30 | 4.56 | 5.79 | 5.59 | 5.40 | 4.86 | 4.68 | 5.04 | |
| DSO | days | 88.71 | 92.69 | 91.81 | 85.48 | 79.76 | 84.44 | 86.67 | 83.04 | 77.48 | 88.04 | 88.08 | 86.27 | 84.94 | 79.98 | 63.09 | 65.30 | 67.60 | 75.07 | 78.00 | 72.36 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.11
= 88.71
To analyze Axalta Coating Systems Ltd's days of sales outstanding (DSO) over the past eight quarters, we observe a fluctuating trend. The DSO ranged from a low of 79.76 days in Q4 2022 to a high of 92.69 days in Q3 2023. Overall, the company has shown some inconsistency in collecting its accounts receivable, possibly indicating variation in its credit policies or the efficiency of its collection process.
The increase in DSO from Q4 2022 to Q3 2023 suggests that the company may be facing challenges in converting sales into cash, which can impact its liquidity and cash flow. A higher DSO typically indicates that the company is taking longer to collect payments from customers, potentially leading to increased bad debt risk or working capital constraints.
On the positive side, the DSO decreased slightly in Q1 2023 compared to the previous quarter, indicating a potential improvement in the company's receivables management. However, it is essential for Axalta Coating Systems Ltd to closely monitor its DSO levels and take proactive measures to streamline its accounts receivable processes for better cash flow management and financial health in the long term.
Peer comparison
Dec 31, 2023