Element Solutions Inc (ESI)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.44 | 5.59 | 5.07 | 4.91 | 5.08 | 5.05 | 5.19 | 5.20 | 5.30 | 5.59 | 5.61 | 4.97 | 4.68 | 4.88 | 4.51 | 4.78 | 4.62 | 4.60 | 4.84 | 5.68 | |
| DSO | days | 67.04 | 65.31 | 72.04 | 74.33 | 71.79 | 72.24 | 70.31 | 70.15 | 68.90 | 65.26 | 65.08 | 73.43 | 78.02 | 74.86 | 80.84 | 76.37 | 79.00 | 79.43 | 75.40 | 64.28 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.44
= 67.04
The analysis of Element Solutions Inc.'s Days Sales Outstanding (DSO) over the period from June 30, 2020 to March 31, 2025 reveals notable fluctuations and overall trends in the company's receivables collection efficiency.
Initially, at the end of June 2020, the DSO was approximately 64.28 days, indicating that on average, it took around two months for the company to collect receivables. During the subsequent quarters, there was a consistent upward trend, with the DSO increasing to 75.40 days by September 30, 2020, and reaching approximately 79.43 days by December 31, 2020. This signifies a slowdown in receivable collections during this period.
Throughout 2021, the DSO fluctuated but remained elevated, with values such as 79.00 days at the end of March 2021, 76.37 days in June, 80.84 days in September, and a slight decrease to 74.86 days by year-end. The mean DSO for 2021 suggests periods of collection challenges persisted, although slight improvements were observed toward the year's end.
In 2022, the DSO demonstrated a notable decline, starting at 78.02 days and decreasing to 65.08 days by September 30, 2022. By year-end, it stabilized at approximately 65.26 days. The reduction indicates an improvement in receivables collection efficiency during the first nine months of 2022, approaching pre-2020 levels.
The trend continued into 2023, with a slight increase in DSO values, reaching 68.90 days in March, 70.15 days in June, and 70.31 days in September, before slightly rising again to 72.24 days at the end of December 2023. These figures suggest a mild elongation in collection periods compared to late 2022 but remained within a relatively consistent range.
Moving into 2024, the DSO was approximately 71.79 days in March, peaking slightly at 74.33 days by June, and then slightly decreasing back to 72.04 days in September, before falling further to 65.31 days at the end of December 2024. This pattern indicates cyclical variations but overall shows periods of more efficient collections towards the year's end.
In the first quarter of 2025, the DSO was recorded at 67.04 days, representing a moderate increase from the end of December 2024 but still within a range that suggests manageable receivable collection times.
Overall, the data indicates that Element Solutions Inc. experienced significant variability in its DSO over the analyzed period. The most elevated levels occurred in late 2020 and early 2021, reflecting extended collection periods potentially due to external or internal factors affecting credit policies or customer payment behavior. The improvement observed in late 2022 points toward enhanced collection efficiency, which continued with some fluctuations into 2023 and 2024. The current levels, averaging around 67 days in early 2025, suggest the company's collection period remains within a reasonable timeframe, aligning with industry standards for similar businesses, although attention to variability and potential external influences remains warranted.
Peer comparison
Mar 31, 2025