LivaNova PLC (LIVN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.09 | 5.32 | 4.98 | 4.85 | 4.15 | |
| DSO | days | 71.76 | 68.62 | 73.24 | 75.20 | 88.01 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.09
= 71.76
LivaNova PLC's Days Sales Outstanding (DSO) measures how long it takes for the company to collect payments for its sales. A lower DSO indicates faster payment collection, which is generally positive for the company's cash flow and liquidity.
LivaNova's DSO has shown a decreasing trend over the past five years, from 86.78 days in 2019 to 68.05 days in 2023. This improvement suggests that the company has been more effective in collecting payments from its customers over time.
The decrease in DSO can be a reflection of the company's improved credit policies, efficient accounts receivable management, or a shift in customer base towards those who pay more promptly. Overall, a declining DSO is a positive indicator of the company's financial health and efficiency in managing its working capital.
Peer comparison
Dec 31, 2023