Ingevity Corp (NGVT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 339.38 | 327.39 | 2,228.83 | 7.75 | 8.01 | |
| DSO | days | 1.08 | 1.11 | 0.16 | 47.10 | 45.55 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 339.38
= 1.08
Ingevity Corp's Days Sales Outstanding (DSO) is a measure of how long it takes for the company to collect revenue after making a sale. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally a positive sign.
From the data provided, we can observe fluctuations in Ingevity Corp's DSO over the past five years. In 2023, the DSO decreased to 39.26 days from 49.18 days in 2022, showing a significant improvement in the collection of receivables. This suggests that the company has become more efficient in collecting payments from customers, potentially enhancing its cash flow and liquidity position.
Comparing the DSO figures over the years, we see that in 2021, the DSO was slightly lower at 42.42 days compared to 2020 (44.42 days) and 2019 (42.35 days). This indicates that the company was able to collect its accounts receivable more quickly in 2021 and maintain a relatively stable collection period over the years.
Overall, the trend in Ingevity Corp's DSO indicates that the company has been improving its receivables management efficiency, as seen in the decreasing DSO figures. A lower DSO reflects a faster turnover of accounts receivable and a more effective collection process, which can positively impact the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023