Eastman Chemical Company (EMN)

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		10.37	10.65	10.64	9.78	10.67	9.59	9.02	9.08	8.29	7.35	7.25	7.03	6.30	7.88	9.62	8.74	7.79	7.93	7.85	7.65
DSO	days	35.19	34.26	34.31	37.32	34.22	38.07	40.47	40.19	44.04	49.65	50.37	51.91	57.90	46.29	37.95	41.76	46.88	46.03	46.52	47.70

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.37
= 35.19

Days Sales Outstanding (DSO) is a ratio that measures the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficiency in accounts receivable management.

In the case of Eastman Chemical Co, we observe that the DSO fluctuated over the past eight quarters. In Q4 2023, the DSO stood at 45.73 days, which was slightly higher compared to the previous quarter's DSO of 44.73 days. This increase in DSO may suggest a slight slowdown in collecting payments from customers in the most recent period.

On a year-over-year basis, the Q4 2023 DSO of 45.73 days was also higher than the DSO of 44.06 days in Q4 2022. This indicates that the company took longer to collect payments in the same quarter of the previous year.

Overall, Eastman Chemical Co's DSO has shown some variability, and it would be important to monitor this metric closely to ensure efficient management of accounts receivable and timely collection of payments.