Builders FirstSource Inc (BLDR)

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		9.90	9.26	9.92	13.27	13.49	10.47	8.62	8.50	10.11	7.73	6.30	5.93	8.94	8.41	9.76	9.81	10.51	9.52	9.71	10.90
DSO	days	36.88	39.41	36.78	27.50	27.06	34.86	42.36	42.94	36.10	47.22	57.89	61.58	40.81	43.40	37.38	37.20	34.73	38.34	37.59	33.47

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.90
= 36.88

Builders Firstsource Inc's days of sales outstanding (DSO) measures how long it takes the company to collect its accounts receivable. A lower DSO indicates faster collections, which is generally favorable for cash flow management.

Analyzing the trend of DSO over the past eight quarters, we observe fluctuations in the metric. In Q4 2023, the DSO decreased to 36.87 days from the previous quarter, Q3 2023, where it was 39.35 days. This decrease in DSO suggests that Builders Firstsource Inc improved its accounts receivable collection efficiency.

Comparing Q4 2023 to the same quarter a year ago, Q4 2022, the company's DSO has increased slightly from 27.03 days to 36.87 days. This increase may indicate a longer time for the company to collect its accounts receivable compared to the prior year. It is important to monitor this trend over time to ensure the company maintains its efficiency in managing accounts receivable.

Overall, despite some fluctuations, the recent decrease in DSO in the most recent quarter indicates improved efficiency in collections for Builders Firstsource Inc. Monitoring and managing DSO effectively can help the company maintain a healthy cash flow and liquidity position.