Clean Harbors Inc (CLH)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.67 | 5.49 | 5.36 | 4.80 | 5.13 | |
| DSO | days | 64.40 | 66.50 | 68.12 | 76.08 | 71.10 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.67
= 64.40
Clean Harbors Inc's days of sales outstanding (DSO) have shown a moderate fluctuation over the past five years. As of December 31, 2020, the DSO stood at 71.10 days, which increased to 76.08 days by December 31, 2021. However, the company managed to improve its DSO performance in the following years, with 68.12 days on December 31, 2022, 66.50 days by December 31, 2023, and a further decrease to 64.40 days by December 31, 2024.
This trend indicates that Clean Harbors Inc has been enhancing its efficiency in collecting outstanding accounts receivable over the years, leading to quicker conversion of sales into cash. A decreasing DSO is generally a positive sign, suggesting effective credit management practices and a healthy cash flow cycle. However, it is important for the company to maintain this improvement in DSO to ensure continued financial stability and liquidity.