FMC Corporation (FMC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 1.54 | 1.94 | 1.95 | 1.99 | 2.07 | |
| DSO | days | 236.36 | 188.04 | 187.31 | 183.44 | 176.66 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.54
= 236.36
The Days Sales Outstanding (DSO) ratio for FMC Corp. has shown fluctuations over the past five years. In 2023, the DSO increased to 219.90 days from 180.63 days in 2022. This suggests that the company took longer to collect its accounts receivable in 2023 compared to the previous year.
Looking further back, the DSO in 2021 was 186.92 days, slightly higher than the 183.23 days recorded in 2020. However, the DSO was significantly lower in 2019 at 176.66 days.
A high DSO value indicates that FMC Corp. is taking a longer time to convert its accounts receivable into cash, which may be indicative of potential liquidity issues or difficulties in collecting payments from customers.
It is important for FMC Corp. to closely monitor its DSO and implement strategies to improve the efficiency of its accounts receivable management, such as offering discounts for early payment or tightening credit policies to reduce the collection period and enhance cash flow.
Peer comparison
Dec 31, 2023