Innospec Inc (IOSP)

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 5.40 5.72 6.31 6.10 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
DSO days 67.58 63.82 57.87 59.88 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

December 31, 2024 calculation

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

The Days Sales Outstanding (DSO) for Innospec Inc has shown fluctuating trends over the past few years. DSO is a measure of how long it takes for a company to collect revenue after a sale is made.

From March 31, 2020, to September 30, 2021, the DSO increased gradually from 72.24 days to 80.08 days, indicating a potential delay in collecting payments from customers. Subsequently, there was a slight decrease to 70.00 days by December 31, 2021.

The company then experienced a noticeable increase in the DSO to 76.27 days by March 31, 2022, before a significant drop to 56.35 days by June 30, 2023. This decrease continued through September 30, 2024, where the DSO stood at 63.82 days.

Overall, the varying DSO figures suggest that Innospec Inc may have encountered challenges in efficient accounts receivable management during certain periods, which could impact cash flow and working capital. The recent improvement in DSO towards the end of the observed period may indicate a more effective collection process, positively impacting the company's financial health.