Topbuild Corp (BLD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.07 | 6.36 | 6.05 | 6.19 | 6.41 | 5.86 | 5.92 | 6.04 | 5.92 | 5.83 | 5.57 | 5.27 | 5.15 | 6.02 | 6.02 | 5.99 | 6.30 | 6.03 | 6.19 | 6.09 | |
| DSO | days | 51.64 | 57.37 | 60.34 | 58.96 | 56.95 | 62.33 | 61.64 | 60.38 | 61.63 | 62.57 | 65.50 | 69.20 | 70.84 | 60.61 | 60.58 | 60.96 | 57.92 | 60.50 | 58.99 | 59.91 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.07
= 51.64
Days Sales Outstanding (DSO) is a key financial metric that indicates how long it takes a company to collect payment after making a sale. For Topbuild Corp, the DSO has fluctuated over the years based on the data provided.
In March 2020, the DSO was at 59.91 days, showing relatively quick collections. The company managed to reduce this further by June 2020 to 58.99 days. However, there was a slight increase in DSO by September 2020 at 60.50 days. By December 2020, Topbuild Corp improved its DSO to 57.92 days.
Throughout the following years, the DSO remained relatively stable, hovering around 60 days mark until December 2021 when there was a noticeable increase to 70.84 days. This spike could indicate potential issues with collections during that period. The company managed to bring down the DSO over the next few quarters, reaching as low as 51.64 days by December 2024, which shows improved efficiency in collecting payments.
Overall, analyzing the trend of DSO for Topbuild Corp provides insights into its effectiveness in managing accounts receivable and cash flow. A lower DSO indicates faster collections, which can free up working capital for the company, while a higher DSO may raise concerns about liquidity and credit management.