Topbuild Corp (BLD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.41 | 5.92 | 5.15 | 6.29 | 6.03 | |
| DSO | days | 56.95 | 61.64 | 70.87 | 58.07 | 60.54 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.41
= 56.95
The Days Sales Outstanding (DSO) for TopBuild Corp has fluctuated over the past five years. In 2023, the DSO decreased to 56.14 days from 60.93 days in 2022, indicating that the company was able to collect its accounts receivable more efficiently. This may suggest improved credit control and prompt collection efforts.
Comparing 2023 to 2021, where the DSO was 69.98 days, there has been a significant improvement. This decrease in DSO from 2021 to 2023 shows that TopBuild Corp has become more efficient in collecting revenue from its credit sales.
However, when looking at the trend from 2020 to 2019, there was a slight increase in DSO from 57.39 days to 59.65 days, indicating potential challenges in collecting accounts receivable during that period.
Overall, the recent drop in Days Sales Outstanding for TopBuild Corp suggests enhanced efficiency in collecting payments from customers, which can positively impact the company's cash flow and working capital management.