ArcBest Corp (ARCB)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		9.71	9.17	9.01	6.71	8.78
DSO	days	37.59	39.80	40.52	54.39	41.58

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.71
= 37.59

The Days Sales Outstanding (DSO) for ArcBest Corp has shown fluctuations over the past five years. Starting at 41.58 days on December 31, 2020, the DSO increased to 54.39 days by December 31, 2021. However, the trend reversed as the DSO decreased to 40.52 days by December 31, 2022, indicating a more efficient accounts receivable collection process.

Further improvement was seen in the following years, with the DSO decreasing to 39.80 days by December 31, 2023, and then to 37.59 days by December 31, 2024. These lower DSO values suggest that ArcBest Corp has been managing its receivables more effectively, possibly through better credit policies or prompt collection efforts.

Overall, the decreasing trend in DSO is a positive indicator of the company's financial health, as a lower DSO signifies quicker conversion of accounts receivable into cash. It implies that ArcBest Corp is collecting payments from its customers more efficiently, which can enhance cash flow and liquidity in the long run.