Celanese Corporation (CE)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.38 | 3.87 | 4.77 | 4.18 | 4.83 | |
| DSO | days | 67.86 | 94.21 | 76.53 | 87.33 | 75.63 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.38
= 67.86
Days sales outstanding (DSO) is a key financial metric that measures the average number of days it takes for a company to collect payment after a sale is made. A lower DSO indicates that the company is efficient in collecting payments from its customers, while a higher DSO may suggest potential issues with accounts receivable management or customer creditworthiness.
Analyzing Celanese Corp's DSO over the past five years, we observe some fluctuations in the trend. In 2020, the DSO was relatively high at 80.16 days, indicating that the company took longer to collect payments from customers that year. However, there was a significant improvement in 2021, with the DSO decreasing to 71.27 days, suggesting enhanced efficiency in accounts receivable management.
The DSO further decreased in 2022 to 77.51 days, indicating continued progress in collections. In 2023, the DSO improved significantly to 59.52 days, reaching a five-year low. This sharp decline suggests that Celanese Corp has further optimized its accounts receivable processes, leading to quicker cash conversion from sales.
Overall, the trend in Celanese Corp's DSO indicates a general improvement in accounts receivable management efficiency over the past years, with the company successfully reducing the average number of days it takes to collect payments from customers. This trend is positive as it reflects enhanced working capital management and potentially signals a stronger financial position for the company.
Peer comparison
Dec 31, 2023