Dana Inc (DAN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.15	6.22	5.54	4.76	6.31
DSO	days	59.35	58.72	65.88	76.64	57.82

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.15
= 59.35

Dana Inc's days of sales outstanding (DSO) have fluctuated over the past five years. In 2023, the DSO was 57.09 days, slightly higher than the 56.64 days in 2022. This indicates that the company took about 57 days on average to collect its accounts receivable in 2023. Compared to 2021, where the DSO was 62.88 days, Dana Inc improved its collection efficiency in 2023.

However, when looking further back, the DSO was higher in 2020 at 73.55 days, reflecting a longer collection period that year. The significant decrease in DSO from 2020 to 2021 suggests an improvement in the company's receivables management practices.

In 2019, Dana Inc had a DSO of 55.26 days, which was lower than in 2023 and 2022. This indicates that the company was more efficient in collecting its accounts receivable in 2019 compared to the more recent years.

Overall, Dana Inc has shown varying levels of efficiency in managing its accounts receivable over the past five years, with improvements seen in 2023 compared to 2021 and 2020, but a slight increase compared to 2019. Analysis of the trend in DSO can provide insights into the effectiveness of the company's credit and collection policies.