Sensient Technologies Corporation (SXT)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.26 | 4.71 | 5.24 | 5.63 | 6.12 | |
| DSO | days | 69.43 | 77.53 | 69.70 | 64.87 | 59.68 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.26
= 69.43
The days of sales outstanding (DSO) for Sensient Technologies Corp. have exhibited fluctuations over the past five years. In 2023, the company's DSO decreased to 68.21 days from 76.73 days in 2022. This reduction indicates that the company is collecting its accounts receivable more quickly in 2023 compared to the previous year.
Despite the improvement in 2023, the DSO remains slightly higher than the levels observed in 2020 and 2019. This suggests that there may be room for further optimization in the company's accounts receivable management processes to enhance efficiency in cash collection.
Overall, monitoring the trend in DSO is crucial for evaluating Sensient Technologies Corp.'s effectiveness in converting sales into cash and managing its accounts receivable efficiently. It is important for stakeholders to assess the company's DSO in conjunction with other financial metrics to gain a comprehensive understanding of its overall financial performance and sustainability.
Peer comparison
Dec 31, 2023