Enviri Corporation (NVRI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.58 | 6.52 | 4.50 | 3.47 | 3.64 | |
| DSO | days | 55.50 | 56.00 | 81.15 | 105.08 | 100.39 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.58
= 55.50
The days of sales outstanding (DSO) for Enviri Corp have shown a declining trend over the past five years, indicating an improvement in the company's efficiency in collecting accounts receivable. The DSO decreased from 80.40 days in 2019 to 55.50 days in 2023. This suggests that Enviri Corp has been able to collect payments from its customers more quickly over the years.
The reduction in DSO can potentially signify effective credit control policies, more stringent collection efforts, or improved customer payment behavior. A lower DSO implies that the company is converting its accounts receivable into cash at a faster rate, which can enhance cash flow and liquidity. Enviri Corp's ability to efficiently manage its accounts receivable is a positive indicator of its financial health and operational efficiency. Overall, the declining trend in DSO reflects positively on the company's financial management practices and potentially its growth prospects.