Cleveland-Cliffs Inc (CLF)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.95 | 11.73 | 9.48 | 4.49 | 13.04 | |
| DSO | days | 30.53 | 31.12 | 38.51 | 81.33 | 27.99 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.95
= 30.53
Cleveland-Cliffs Inc's days of sales outstanding (DSO) measure how long it takes the company to collect revenue from its sales. A decreasing trend in DSO is generally positive, indicating more efficient collections and better cash flow management.
From 2019 to 2020, there was a significant increase in DSO to 81.33 days, suggesting potential issues with collecting revenue promptly. However, the company improved significantly in 2021, reducing DSO to 38.46 days, which may indicate efforts to streamline collections processes.
In 2022 and 2023, Cleveland-Cliffs Inc continued to enhance its collection efficiency, with DSO decreasing to 31.12 days and 30.53 days, respectively. This trend implies that the company is managing its receivables effectively and converting sales into cash more swiftly.
Overall, the downward trend in DSO from 2020 to 2023 demonstrates improved collection practices and better cash flow management, which could positively impact the company's liquidity and overall financial health.
Peer comparison
Dec 31, 2023