Cleveland-Cliffs Inc (CLF)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 12.17 | 12.62 | 11.85 | 11.72 | 11.95 | 10.33 | 9.60 | 10.08 | 11.73 | 10.12 | 9.20 | 8.38 | 9.48 | 7.39 | 6.30 | 5.45 | 4.49 | 5.48 | 4.67 | 3.52 | |
| DSO | days | 29.98 | 28.93 | 30.80 | 31.13 | 30.53 | 35.32 | 38.03 | 36.22 | 31.12 | 36.06 | 39.69 | 43.56 | 38.51 | 49.38 | 57.91 | 66.95 | 81.33 | 66.60 | 78.24 | 103.66 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.17
= 29.98
The Days of Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO value generally implies more efficient accounts receivable management and quicker cash conversion.
For Cleveland-Cliffs Inc, the DSO trend over the analyzed periods shows some fluctuations but overall a decreasing pattern is observed. The DSO decreased from 103.66 days on March 31, 2020, to 29.98 days on December 31, 2024. This suggests that Cleveland-Cliffs Inc has improved its efficiency in collecting revenue from sales over time.
It is important to note that a significant decrease in DSO can indicate effective credit and collection policies, enhanced customer payments, or changes in sales terms that allow for quicker cash collection. However, a very low DSO may also raise concerns about overly strict credit policies that could potentially restrict sales growth.
Overall, a decreasing trend in DSO for Cleveland-Cliffs Inc is a positive signal of improved accounts receivable management and efficient cash flow operations. However, continued monitoring is necessary to ensure a balance between quick cash conversion and maintaining healthy customer relationships.
Peer comparison
Dec 31, 2024