Corteva Inc (CTVA)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.14 | 3.06 | 3.25 | 2.89 | 2.50 | |
| DSO | days | 116.28 | 119.21 | 112.17 | 126.47 | 145.73 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.14
= 116.28
Corteva Inc's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years, ranging from a high of 145.73 days in 2019 to a low of 112.17 days in 2021. The DSO for the most recent year, 2023, stands at 116.28 days, showing a slight improvement compared to the prior year.
A lower DSO indicates that the company is collecting its accounts receivable more efficiently, which is generally seen as a positive signal of strong cash flow management. Conversely, a higher DSO could suggest potential issues with collecting payment from customers in a timely manner, impacting liquidity and working capital.
It is important for Corteva Inc to closely monitor its DSO and implement strategies to manage its accounts receivable effectively, such as improving credit policies, enhancing collection processes, and identifying and addressing any potential delinquencies. By focusing on optimizing DSO, the company can improve its cash conversion cycle and enhance overall financial performance.
Peer comparison
Dec 31, 2023