Visteon Corp (VC)

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		4.00	4.53	4.83	4.95	4.48	4.17	4.65	4.86	3.96	5.15	5.68	5.08	3.85	4.24	6.12	6.38	4.38	5.44	6.16	5.60
DSO	days	91.30	80.50	75.60	73.80	81.44	87.52	78.49	75.15	92.24	70.81	64.25	71.79	94.83	86.11	59.68	57.23	83.29	67.10	59.27	65.17

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.00
= 91.30

Days of Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes a company to collect payment after making a sale. A lower DSO typically suggests a more efficient collections process and better liquidity management.

Analyzing the DSO trend for Visteon Corp. over the past eight quarters, we observe a general downward trend from 87.31 days in Q3 2022 to 67.94 days in Q4 2023. This indicates an improvement in the company's ability to collect payments from customers in a timely manner.

On a quarterly basis, the DSO fluctuated within a relatively narrow range between 67.94 days and 70.48 days in the past year. This stability suggests consistency in Visteon Corp.'s collection efforts and customer payment behavior.

Overall, the decreasing trend in DSO over the quarters and the relatively stable range in recent periods are positive indicators for Visteon Corp. It signals effective credit and collections management, which is essential for maintaining healthy cash flows and working capital efficiency in the company.