Topbuild Corp (BLD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.09 | 6.41 | 5.92 | 5.15 | 6.29 | |
| DSO | days | 51.46 | 56.95 | 61.64 | 70.87 | 58.07 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.09
= 51.46
Based on the data provided for Topbuild Corp's days of sales outstanding (DSO) over the past five years, we observe the following trend:
- As of December 31, 2020, the DSO was 58.07 days, indicating that, on average, it took the company approximately 58 days to collect its accounts receivable.
- By December 31, 2021, the DSO increased to 70.87 days, suggesting a longer collection period compared to the previous year.
- The DSO decreased to 61.64 days by December 31, 2022, which could indicate improvements in the company's receivables management processes.
- Subsequently, on December 31, 2023, the DSO further decreased to 56.95 days, reflecting a more efficient collection of accounts receivable.
- The most recent data point on December 31, 2024, shows a DSO of 51.46 days, indicating a continued reduction in the time taken by Topbuild Corp to collect its outstanding sales.
Overall, the trend suggests that Topbuild Corp has been effectively managing its accounts receivable and improving its collection processes over the past five years, leading to a shorter DSO period, which is generally considered a positive indicator of operational efficiency and liquidity.