Olin Corporation (OLN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 439.33 | 214.39 | 28,044.00 | 361.94 | 7.73 | |
| DSO | days | 0.83 | 1.70 | 0.01 | 1.01 | 47.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 439.33
= 0.83
Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that a company is collecting payments more quickly, while a higher DSO suggests that collections are slower.
Analyzing Olin Corp.'s DSO over the past five years, we observe fluctuations in this ratio. In 2023, the DSO increased to 47.54 days from 37.67 days in 2022, indicating a deterioration in the company's ability to collect payments promptly. This increase may suggest potential issues with accounts receivable management or client payment delays.
Comparing the DSO to previous years, Olin Corp. also had higher DSO in 2020 and 2019, at 49.82 days and 46.26 days respectively, which may indicate historical challenges in timely collection of receivables.
On the other hand, Olin Corp. managed to achieve a lower DSO in 2021 at 45.34 days compared to 2020 and 2019, indicating an improvement in the efficiency of collecting payments during that period.
Overall, the trend in Olin Corp.'s DSO reflects fluctuations in its accounts receivable management practices and potential variations in customer payment behaviors. Further analysis of the underlying reasons for these fluctuations would be crucial to understanding the company's working capital management and overall financial performance.
Peer comparison
Dec 31, 2023