Chart Industries Inc (GTLS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.99 | 3.11 | 5.50 | 6.92 | 6.29 | |
| DSO | days | 91.37 | 117.42 | 66.33 | 52.74 | 58.04 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.99
= 91.37
Chart Industries Inc's Days Sales Outstanding (DSO) has shown an increasing trend over the past five years. In 2019, the DSO stood at 81.11 days, and it has since increased to 135.07 days as of December 31, 2023. This indicates that the company is taking longer to convert its sales into cash, which may suggest potential issues with collections and accounts receivable management. It is important for the company to closely monitor and improve its DSO to ensure efficient cash flow management and timely collection of receivables. Further analysis of the company's credit policies, customer payment terms, and overall receivables management practices may be necessary to address this trend and optimize working capital efficiency.