Innospec Inc (IOSP)
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 | 5.42 | 6.44 | 6.48 | 5.84 | 5.87 | 5.45 | 5.09 | 4.79 | 5.21 | 4.56 | 4.51 | 4.68 | 5.38 | 6.17 | 6.46 | 5.05 | 5.18 | 5.10 | 5.37 | 5.05 | |
| DSO | days | 67.39 | 56.70 | 56.35 | 62.46 | 62.19 | 66.99 | 71.74 | 76.27 | 70.00 | 80.08 | 80.98 | 78.03 | 67.78 | 59.13 | 56.46 | 72.24 | 70.44 | 71.60 | 68.02 | 72.28 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.42
= 67.39
To analyze Innospec Inc's Days of Sales Outstanding (DSO) trend, we observe that the DSO figures have fluctuated over the past eight quarters. In Q4 2023, the DSO stood at 67.39 days, representing an increase from the previous quarter. This indicates that on average, it took the company 67.39 days to collect its accounts receivable.
Comparing Q4 2023 to the figures from the prior year, we can see that there has been a general improvement in DSO performance, as the value decreased from 62.19 days in Q4 2022 to 67.39 days in Q4 2023. However, compared to Q3 2023, the DSO increased in the most recent quarter, which could suggest a longer collection period for sales made in Q4 2023.
Overall, it is essential for the company to monitor its DSO closely to ensure efficient management of accounts receivable and timely collection of outstanding payments from customers. The trend in DSO can indicate the effectiveness of the company's credit and collection policies, as well as the financial health of its customers. Further analysis and comparison with industry benchmarks may provide more insights into the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023