Dana Inc (DAN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		6.15	5.65	5.53	5.45	6.22	5.54	5.23	4.80	5.54	5.27	5.20	4.41	4.79	4.88	6.63	6.37	6.34	5.73	5.08	4.99
DSO	days	59.35	64.65	65.95	67.03	58.72	65.88	69.84	75.97	65.88	69.28	70.22	82.83	76.19	74.78	55.06	57.32	57.62	63.66	71.80	73.08

December 31, 2023 calculation

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

Dana Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after making a sale. Analyzing the trend in DSO over the past eight quarters, we observe fluctuations in the metric. In Q4 2023, the DSO decreased to 57.09 days compared to 63.74 days in Q3 2023. This suggests an improvement in the company's efficiency in collecting payments from customers.

Comparing Q4 2023 to the prior year's Q4 2022, we see a slight increase from 56.64 days to 57.09 days. Dana Inc managed to maintain a relatively similar DSO level year-over-year, indicating stability in its accounts receivable management.

Looking at longer-term trends, there was a notable decrease in DSO from Q2 2022 to Q4 2023. The company was able to reduce the number of days it takes to collect sales proceeds, reflecting improved cash flow and potentially more effective credit policies or collection efforts.

Overall, while there have been fluctuations in Dana Inc's DSO over the past quarters, the recent decrease in DSO indicates a positive trend towards quicker collection of receivables which can enhance the company's liquidity position and working capital management.