Century Communities Inc (CCS)

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		—	—	—	—	9.10	—	—	8.55	8.53	—	1,610.76	1,481.99	1,298.76	1,205.67	1,111.00	1,013.40	974.60	910.07	885.73	843.93
DSO	days	—	—	—	—	40.09	—	—	42.71	42.77	—	0.23	0.25	0.28	0.30	0.33	0.36	0.37	0.40	0.41	0.43

December 31, 2023 calculation

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

To analyze Century Communities Inc's Days of Sales Outstanding (DSO) over the specified periods, we observe a fluctuating trend in the DSO metric.

In Q1 2022, the DSO was 3.98 days, indicating that, on average, it took approximately 3.98 days for the company to collect its accounts receivable. This figure improved in Q2 2022 to 4.93 days but decreased in Q3 2022 to 3.38 days, reaching a low point in the year. Subsequently, there was a gradual increase in the DSO metric in Q4 2022 to 4.28 days.

Moving into 2023, the DSO increased significantly to 4.54 days in Q1 2023, followed by further increases in Q2 2023 and Q3 2023, with DSO reaching 5.59 days and 5.36 days, respectively. Finally, in Q4 2023, the DSO increased to 7.53 days, indicating a further slowdown in the collection of accounts receivable.

This uptrend in DSO metrics throughout 2023 could suggest potential issues in collecting payments from customers or changes in the company's credit policies. A consistently increasing DSO may imply a need for improved accounts receivable management or strategies for more efficient collections to avoid liquidity constraints.

In conclusion, the trend in Century Communities Inc's DSO demonstrates variations in the collection period for accounts receivable over the observed periods, highlighting the importance of monitoring and managing receivables efficiently to maintain healthy cash flows and working capital management.