Chemours Co (CC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.54 | 10.60 | 8.53 | 9.27 | 7.89 | |
| DSO | days | 38.27 | 34.42 | 42.81 | 39.37 | 46.26 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.54
= 38.27
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes a company to collect revenue after a sale is made. Lower DSO indicates faster collection of accounts receivable, which is generally favorable.
Analyzing the DSO of Chemours Co over the past five years, we observe a fluctuating trend. In 2023, the DSO increased to 38.27 days from 34.42 days in 2022, indicating a slight decrease in the efficiency of collecting revenue from customers. This may raise concerns about the company's ability to manage its accounts receivable effectively.
Comparing 2023 to prior years, the DSO is lower than in 2021 and 2019 but higher than in 2020. The decrease in DSO from 2021 to 2022 was a positive sign of quicker collection, but the subsequent increase in 2023 reversed that trend.
Overall, while the DSO of Chemours Co has shown variability, management should focus on implementing strategies to improve the collection of accounts receivable efficiently to ensure better cash flow management and overall financial health.
Peer comparison
Dec 31, 2023