Topbuild Corp (BLD)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 6.05 | 5.66 | 5.73 | 5.84 | |
| DSO | days | 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 | 60.31 | 64.51 | 63.75 | 62.54 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.41
= 56.95
To analyze TopBuild Corp's days of sales outstanding (DSO) over the past 8 quarters, we first calculated the average DSO for each quarter. From the data provided, we observe a declining trend in DSO from Q1 2022 to Q4 2023, indicating that the company has been collecting its accounts receivable at a faster pace over this period.
Specifically, the DSO decreased from 68.61 days in Q1 2022 to 56.14 days in Q4 2023. This improvement suggests that TopBuild Corp has been more efficient in collecting payments from customers, which could positively impact the company's cash flow and liquidity position.
It is important to note that a lower DSO typically indicates that the company is managing its accounts receivable effectively and efficiently. However, it is also essential to consider the nature of the industry and the company's credit policies when analyzing DSO. Comparing TopBuild Corp's DSO to industry benchmarks and its competitors can provide further insights into its performance in managing accounts receivable.