Sensata Technologies Holding NV (ST)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.21	5.37	5.57	5.28	6.19
DSO	days	70.07	67.99	65.50	69.11	59.01

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.21
= 70.07

To analyze Sensata Technologies Holding Plc's Days of Sales Outstanding (DSO) over the past five years, we observe fluctuations in the metric. DSO represents the average number of days it takes for a company to collect revenue after a sale is made.

From 2019 to 2020, there was a notable increase in DSO from 59.01 days to 69.11 days, indicating a lengthening of the company's collection period. This could signal potential issues with accounts receivable management or changes in customer payment behavior.

In 2021, there was a slight improvement, with DSO decreasing to 62.42 days compared to the previous year. However, the metric remained above the 2019 level, suggesting ongoing challenges in efficient collections.

Both 2022 and 2023 saw DSO remaining relatively stable around 67 days, indicating that the company may have implemented strategies to maintain collections efficiency. However, a sustained high DSO level compared to historical data may indicate persistent difficulties in managing receivables effectively.

Overall, Sensata Technologies Holding Plc's DSO has shown variability over the years, highlighting the importance of closely monitoring collections processes and ensuring timely receipt of revenue to support liquidity and financial health.