Century Communities Inc (CCS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		—	9.11	8.53	1,298.76	974.60
DSO	days	—	40.09	42.78	0.28	0.37

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

The Days Sales Outstanding (DSO) ratio measures how quickly a company collects its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable.

Century Communities Inc's DSO has fluctuated over the past five years, ranging from a low of 2.51 days in 2020 to a high of 7.53 days in 2023. A significant increase in DSO from 2022 to 2023 indicates that the company took longer to collect payments from customers in 2023 compared to the previous year.

The lower DSO in 2020 suggests that Century Communities Inc was more efficient in collecting payments from customers during that period. However, the higher DSO in 2023 could indicate potential issues with accounts receivable management or a shift in the company's sales and credit policies.

Overall, it is essential for Century Communities Inc to monitor its DSO closely to ensure efficient cash flow management and timely collection of accounts receivable to support its financial health and operations.