Clearwater Paper Corporation (CLW)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.29 | 11.02 | 10.59 | 11.64 | 11.05 | |
| DSO | days | 32.33 | 33.13 | 34.47 | 31.37 | 33.03 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.29
= 32.33
Days of sales outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. Clearwater Paper Corp's DSO has shown fluctuations over the past five years, ranging from 31.37 days in 2020 to 34.47 days in 2021.
The DSO decreased to 32.30 days in 2023, indicating an improvement in the company's ability to collect payments from its customers more efficiently compared to the previous year. This reduction in DSO may suggest better credit management practices, more effective collection efforts, or possibly changes in customer payment terms.
Overall, the trend in Clearwater Paper Corp's DSO over the past five years shows a relatively stable performance in managing its account receivables. However, the company should continue to monitor and improve its collection processes to ensure timely payment from customers and maintain healthy cash flows.