Industry Profiles

Chemical Industry DSO Benchmarks

Image Group
BASF photo
A BASF chemical plant in Port Arthur, Texas. Based in Germany, BASF SE is the largest chemical company in the world.

Days' sales outstanding (DSO) levels in the chemical industry show the importance of the age-old accounting metric in assessing credit performance and standards.

Long known for liquidity challenges, the chemical industry has seemingly turned the corner as current ratio, a key measure of liquidity, and operating cash flow have improved in recent years.  Also, the number of companies using receivables securitization has dropped from 15 to nine in the 58-company chemicals and synthetics industry group of the credit standards index (CSI).

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