Sensient Technologies Corporation (SXT)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		5.34	5.02	4.69	4.84	5.26	5.03	4.76	4.59	4.71	4.93	4.73	4.83	5.24	5.16	5.19	5.16	5.63	5.84	5.63	5.44
DSO	days	68.30	72.71	77.78	75.37	69.44	72.54	76.64	79.61	77.52	74.02	77.16	75.54	69.70	70.72	70.39	70.77	64.88	62.45	64.85	67.06

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.34
= 68.30

Sensient Technologies Corporation's Days of Sales Outstanding (DSO) has exhibited fluctuating trends over the years. The DSO measures the average number of days it takes for the company to collect revenue after making a sale.

From March 31, 2020, to December 31, 2020, the DSO remained relatively stable, ranging from 62.45 to 70.77 days. This suggests that the company was able to efficiently manage its accounts receivable during this period.

However, starting from March 31, 2021, the DSO began to increase, reaching its highest point of 79.61 days on March 31, 2023. This might indicate challenges in collecting payments promptly, potentially leading to cash flow constraints.

Subsequently, the DSO showed some improvement by December 31, 2024, decreasing to 68.30 days. Despite the reduction, the DSO remains higher compared to earlier periods, indicating that the company may still be facing difficulties in collecting payments within a reasonable timeframe.

Overall, Sensient Technologies Corporation should focus on improving its accounts receivable management to reduce DSO and enhance cash flow efficiency in the long term.