Howmet Aerospace Inc (HWM)
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 | 9.30 | 8.50 | 8.90 | 8.51 | 10.12 | 8.67 | 8.96 | 8.88 | 10.87 | 9.85 | 10.91 | 10.46 | 10.91 | 20.20 | 21.22 | 8.97 | 9.78 | 8.04 | 7.93 | 7.77 | |
| DSO | days | 39.26 | 42.92 | 41.03 | 42.88 | 36.08 | 42.08 | 40.73 | 41.09 | 33.58 | 37.04 | 33.44 | 34.89 | 33.46 | 18.07 | 17.20 | 40.70 | 37.32 | 45.37 | 46.05 | 46.98 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.30
= 39.26
To analyze Howmet Aerospace Inc's days of sales outstanding (DSO) trend, we observe that the DSO has fluctuated over the past eight quarters. In Q4 2023, the DSO stood at 38.04 days, showing a decrease from the previous quarter's 41.32 days. Despite this decline, it is worth noting that Q4 2023 DSO is higher than the Q4 2022 DSO of 34.61 days.
Overall, a lower DSO indicates that the company is able to collect its accounts receivable more quickly, which is a positive sign of efficient receivables management. However, it is essential to monitor trends over time to ensure consistency in collecting sales revenue promptly.
Analyzing the quarterly fluctuations in DSO can provide insights into the company's credit policies, customer payment behavior, and overall financial performance. Monitoring DSO trends allows stakeholders to assess the effectiveness of the company's accounts receivable management and the impact on its working capital and cash flow position.
Peer comparison
Dec 31, 2023