Innovex International, Inc (INVX)
Days of sales outstanding (DSO)
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.92 | 2.84 | 2.38 | 2.03 | 1.65 | 1.60 | 1.49 | 2.99 | 1.33 | 1.31 | 1.53 | 1.56 | 1.56 | 1.66 | 1.59 | 1.53 | 1.44 | 1.44 | 1.42 | 1.62 | |
| DSO | days | 93.01 | 128.68 | 153.54 | 179.77 | 221.02 | 227.76 | 244.44 | 121.87 | 274.30 | 278.83 | 237.84 | 234.21 | 233.59 | 220.14 | 230.10 | 238.46 | 252.74 | 253.59 | 256.54 | 225.74 |
June 30, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.92
= 93.01
The analysis of Innovex International, Inc.'s Days of Sales Outstanding (DSO) over the specified period reveals notable fluctuations and trends indicative of the company's collection efficiency and credit management practices.
From September 30, 2020, to December 31, 2022, the DSO generally remained elevated, oscillating within a range of approximately 220 to 256 days. Specifically, the DSO increased from about 225.74 days in September 2020 to a peak of roughly 278.83 days in March 2023. This prolonged period indicates an extended average collection cycle, suggesting that the company was experiencing challenges in collecting receivables promptly, which could tie up working capital and impact liquidity.
Beginning around September 2023, a marked decline in DSO is observable, decreasing sharply from approximately 234.21 days in September 2022 to 121.87 days in September 2023. This reduction signifies a substantial improvement in collection efficiency, reducing the average collection period by over 100 days within a year. Such a decrease likely reflects strategic adjustments in credit policies, enhanced collection efforts, or changes in customer creditworthiness.
Post-September 2023, the DSO continues to decrease, reaching as low as approximately 93.01 days in June 2025. This downward trend suggests ongoing efforts to expedite receivables collection, leading to more efficient cash flow management. The continued reduction to around 93 days signifies a shift toward shorter credit terms or improved customer payment behaviors.
Overall, the company's DSO trend demonstrates a transition from extended collection periods—indicative of potential liquidity constraints or lenient credit terms—to significantly shorter periods, reflecting improved credit management and collection practices. The recent drastic decline in DSO suggests that Innovex International, Inc. has undertaken effective measures to enhance its receivables turnover, potentially improving its liquidity position and operational efficiency in the future.
Peer comparison
Jun 30, 2025