Innospec Inc (IOSP)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 5.40 5.42 5.87 5.21 5.39
DSO days 67.58 67.39 62.19 70.00 67.78

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.40
= 67.58

Based on the provided data, Innospec Inc's Days Sales Outstanding (DSO) has exhibited some fluctuations over the past five years. The trend indicates that the company's collection period has varied, with DSO ranging from a low of 62.19 days on December 31, 2022, to a high of 70.00 days on December 31, 2021.

A general observation is that the company's DSO has been relatively stable, staying within a range of approximately 8.81 days over the period under consideration. This suggests that Innospec Inc has maintained a consistent approach to managing its accounts receivable and collecting payments from customers.

However, there was a slight increase in DSO from 67.78 days on December 31, 2020, to 70.00 days on December 31, 2021, which may indicate a potential challenge in collections efficiency or changes in customers' payment behavior during that period. Subsequently, the DSO declined to 62.19 days by December 31, 2022, which could imply improvements in the company's receivables management practices or a shift towards more timely collections.

Overall, Innospec Inc's DSO performance seems satisfactory, with the company maintaining a balance between prompt collections and allowing reasonable credit terms to customers. Monitoring DSO trends can help assess the effectiveness of the company's credit policies and collection efforts, ensuring optimal cash flow management.