Lear Corporation (LEA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		12.72	12.30	12.86	10.59	13.47
DSO	days	28.71	29.68	28.37	34.46	27.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.72
= 28.71

Lear Corp.'s Days of Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for the company to collect its accounts receivable. A lower DSO value is favorable as it suggests quicker collections, better cash flow management, and potentially lower credit risk.

From 2023 to 2022, Lear Corp.'s DSO improved from 60.31 days to 57.26 days, indicating more efficient collections or stricter credit policy enforcement. This trend suggests a positive development in managing receivables.

Comparing 2022 to 2021, the DSO remained relatively stable at 57.63 days, indicating consistent accounts receivable management during this period.

In 2021, the DSO increased to 57.63 days from 2020's 70 days, reflecting potential challenges in collecting receivables efficiently. However, the company managed to reduce the DSO in the subsequent years.

In 2019, Lear Corp. had a DSO of 54.95 days, which was lower compared to other years in the table. This suggests strong receivables management during that period.

Overall, Lear Corp.'s DSO has shown some fluctuations over the years, but the recent improvement in DSO signifies enhanced efficiency in collecting accounts receivable, which could positively impact the company's cash flow and financial performance.