Ingevity Corp (NGVT)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 779.00 339.38 327.39 2,228.83 7.75
DSO days 0.47 1.08 1.11 0.16 47.10

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 779.00
= 0.47

Based on the data provided, Ingevity Corp's Days Sales Outstanding (DSO) has decreased significantly over the years. It was 47.10 days as of December 31, 2020, and has decreased to just 0.16 days by December 31, 2021. This rapid decrease suggests that the company is able to collect its accounts receivable much faster, indicating strong efficiency in its sales and collection processes.

The DSO remained low at around 1.11 days as of December 31, 2022 and 1.08 days as of December 31, 2023, which indicates continued efficiency in collecting sales revenue. By December 31, 2024, the DSO increased slightly to 0.47 days, but it still remains at a very low level compared to the initial data.

Overall, the trend in Ingevity Corp's DSO shows a consistent and impressive improvement in the company's ability to convert sales into cash quickly. This efficient management of accounts receivable is a positive indicator of the company's financial health and operational effectiveness.