Sealed Air Corporation (SEE)
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 | 9.44 | 9.01 | 9.25 | 9.16 | 7.66 | 7.65 | 7.88 | 7.33 | 7.55 | 6.97 | 6.95 | 7.24 | 7.19 | 7.32 | 8.07 | 8.34 | 7.16 | 8.31 | 7.49 | 7.94 | |
| DSO | days | 38.68 | 40.53 | 39.45 | 39.85 | 47.67 | 47.71 | 46.33 | 49.79 | 48.33 | 52.37 | 52.52 | 50.42 | 50.75 | 49.84 | 45.25 | 43.76 | 51.01 | 43.91 | 48.74 | 45.94 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.44
= 38.68
Days of Sales Outstanding (DSO) is a key metric used to evaluate how efficiently a company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable for liquidity and cash flow.
Analyzing Sealed Air Corp.'s DSO over the past eight quarters reveals fluctuations in the time taken to convert sales into cash receipts. The trend shows a general improvement in DSO from Q4 2022 to Q2 2023, indicating a more efficient collection process. However, an increase in DSO from Q2 2023 to Q3 2023 followed by a slight decrease in Q4 2023 suggests a potential delay in receiving payments.
Despite the recent fluctuations, Sealed Air Corp.'s current DSO of 38.68 days in Q4 2023 is lower than the DSO reported a year ago in Q4 2022, indicating improved receivables management efficiency. Further monitoring of DSO trends will be essential to assess the company's ability to maintain efficient collections and optimize cash flow management in the future.
Peer comparison
Dec 31, 2023