Azenta Inc (AZTA)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.76 | 4.26 | 16.39 | 4.18 | 4.72 | |
| DSO | days | 96.97 | 85.63 | 22.28 | 87.33 | 77.40 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.76
= 96.97
Azenta Inc's Days Sales Outstanding (DSO) is a measure of how many days it takes for the company to collect its accounts receivable. A higher DSO indicates that it takes longer for the company to collect payments from its customers, potentially signaling liquidity issues or inefficiencies in the collections process.
Looking at the trend over the past five years, there has been significant variability in Azenta Inc's DSO. In 2022, the DSO was remarkably low at 22.28 days, indicating that the company was collecting payments from customers relatively quickly. However, this trend seems to have reversed in 2023 and 2024, as the DSO increased to 85.63 days and 96.97 days, respectively.
The increase in DSO in 2023 and 2024 could suggest that Azenta Inc is facing challenges in collecting payments promptly from customers, which may impact its cash flow and working capital management. It could also indicate changes in the company's credit policies or the creditworthiness of its customers.
Overall, it is crucial for Azenta Inc to closely monitor its DSO and take necessary actions to improve collections efficiency, enhance cash flow, and maintain healthy working capital levels in order to ensure sustainable operations and financial stability.
Peer comparison
Sep 30, 2024