Ingevity Corp (NGVT)

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 779.00 — — — 339.38 — — — 327.39 — — — 2,228.83 — — — 8.02 — — —
DSO days 0.47 — — — 1.08 — — — 1.11 — — — 0.16 — — — 45.52 — — —

December 31, 2024 calculation

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

Based on the provided data, Ingevity Corp's Days Sales Outstanding (DSO) is calculated by dividing accounts receivable by average daily sales. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which can be a positive sign of efficient cash flow management.

Ingevity Corp's DSO trend shows fluctuation over the years:

- In December 2020, the DSO was 45.52 days, indicating that on average, it took the company approximately 45.52 days to collect its accounts receivable.
- The DSO improved significantly by December 2021, dropping to 0.16 days, suggesting a substantial improvement in the collection of accounts receivable.
- The trend continued to be favorable with further reductions in DSO to 1.11 days by December 2022 and 1.08 days by December 2023. These low DSO figures indicate efficient management of accounts receivable and potentially healthier cash flows.
- The DSO remained low at 0.47 days by December 2024, indicating continued efficiency in collecting accounts receivable.

Overall, the decreasing trend in DSO over the years suggests that Ingevity Corp has been effectively managing its accounts receivable and improving its cash conversion cycle, which can lead to improved liquidity and financial performance.