Enviri Corporation (NVRI)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.58 | 6.32 | 5.82 | 6.28 | 6.52 | 6.36 | 6.31 | 4.50 | 4.50 | 3.36 | 3.47 | 3.51 | 3.47 | 3.31 | 3.21 | 3.75 | 3.64 | 4.29 | 3.53 | 3.89 | |
| DSO | days | 55.50 | 57.71 | 62.68 | 58.12 | 56.00 | 57.42 | 57.87 | 81.11 | 81.15 | 108.54 | 105.25 | 103.99 | 105.08 | 110.14 | 113.57 | 97.29 | 100.39 | 85.17 | 103.38 | 93.85 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.58
= 55.50
To analyze Enviri Corp's Days Sales Outstanding (DSO) over the past eight quarters, we observe a mix of fluctuations and trends. The DSO is a metric that measures the average number of days a company takes to collect revenue after a sale has been made.
From Q1 2022 to Q2 2022, there was a notable increase in DSO from 58.12 days to 84.85 days, indicating a potential issue with the company's accounts receivable management during that period. However, in the subsequent quarters, we see a gradual improvement in DSO, suggesting that Enviri Corp may have taken steps to streamline their collection processes.
Q3 2022 marked a peak of 66.48 days, and DSO has since shown a general downward trend, reaching 55.50 days in Q4 2023. This consistent decline in DSO over multiple quarters could signal an improvement in the company's efficiency in collecting payments from customers, which is a positive sign for liquidity and cash flow management.
Overall, while there have been fluctuations in Enviri Corp's DSO over the past eight quarters, the recent trend of decreasing DSO values indicates a potential strengthening of their accounts receivable management practices and a more efficient collection process. Continued monitoring of DSO will be crucial to ensure sustained improvements in cash flow and working capital management for Enviri Corp.