Innospec Inc (IOSP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.42 | 5.87 | 5.21 | 5.39 | 5.18 | |
| DSO | days | 67.39 | 62.19 | 70.00 | 67.78 | 70.48 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.42
= 67.39
Innospec Inc's Days Sales Outstanding (DSO) measures how long, on average, it takes for the company to collect revenue from its customers after a sale is made.
Over the past five years, Innospec Inc's DSO has shown some fluctuations but has generally remained within a relatively stable range. The trend indicates that the company has been efficient in collecting payments from its customers.
In 2021, the DSO increased to 70.00 days from 62.19 days in 2020, which suggests that the company may have experienced delays in collecting payments or extending credit to customers. However, the DSO decreased to 67.39 days in 2023, indicating improved efficiency in collecting accounts receivable.
Overall, the variations in DSO over the years might be attributed to the company's sales policies, customer payment terms, or changes in macroeconomic conditions affecting customer payments. Innospec Inc should continue to monitor its DSO to ensure efficient cash flow management and timely collection of accounts receivable.
Peer comparison
Dec 31, 2023