Hexcel Corporation (HXL)

Days of sales outstanding (DSO)

		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	Mar 31, 2020
Receivables turnover		8.91	7.22	6.44	6.55	7.49	7.29	6.49	6.06	6.92	7.26	6.15	6.45	8.02	6.97	7.02	7.55	11.72	11.60	10.56	8.44
DSO	days	40.98	50.54	56.69	55.71	48.73	50.10	56.26	60.21	52.73	50.25	59.32	56.60	45.48	52.36	52.01	48.35	31.14	31.47	34.57	43.23

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.91
= 40.98

To analyze Hexcel Corporation's days of sales outstanding (DSO) over the reported periods, we observe a fluctuating trend in the DSO metric. The DSO represents the average number of days it takes for a company to collect revenue after making a sale.

From the data provided, we note that the DSO has varied significantly, starting at 43.23 days as of March 31, 2020, indicating a reasonable collection period. However, there was a notable improvement in collection efficiency by June 30, 2020, where the DSO decreased to 34.57 days.

Subsequently, Hexcel's DSO continued to decline, reaching its lowest point for the period at 31.14 days by December 31, 2020. This trend reversed in the following quarters, with the DSO increasing to 48.35 days by March 31, 2021, and further to 52.01 days by June 30, 2021, signifying a potential slowdown in collections.

The DSO remained relatively high throughout the rest of 2021, peaking at 56.60 days as of March 31, 2022. However, there was a slight improvement as of June 30, 2022, with the DSO decreasing to 59.32 days. Subsequently, by December 31, 2022, the DSO stood at 52.73 days.

The trend continued with fluctuations in DSO values, occasionally showing improvements but generally remaining above 50 days. By December 31, 2024, the DSO had decreased to 40.98 days, possibly indicating enhanced efficiency in collections.

Overall, the analysis of Hexcel Corporation's DSO suggests varying collection efficiency over the reporting periods. Investors and stakeholders may monitor this metric closely to assess the company's effectiveness in managing accounts receivable and cash flows.