Clearwater Paper Corporation (CLW)

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		11.29	12.12	10.76	11.37	11.02	11.33	10.44	10.65	10.59	10.89	12.10	13.47	11.64	10.31	9.58	8.74	11.05	11.11	10.21	10.21
DSO	days	32.33	30.12	33.92	32.11	33.13	32.23	34.97	34.27	34.47	33.52	30.17	27.10	31.37	35.39	38.08	41.75	33.03	32.85	35.74	35.75

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.29
= 32.33

To analyze Clearwater Paper Corp's Days Sales Outstanding (DSO) performance, we can look at the trend over the past eight quarters. DSO is a measure of how long it takes for a company to collect its accounts receivable.

From the data provided, we observe that the DSO has ranged from 30.12 days to 34.97 days over the past two years. In Q4 2023, the DSO decreased to 32.30 days compared to the previous quarter Q3 2023 (30.12 days), which indicates an increase in the time taken to collect receivables. This reversal may raise concerns about the company's collection efficiency and cash flow management in the latest quarter.

However, it is important to note that Clearwater Paper Corp has maintained a relatively stable DSO performance within a narrow range of 30-35 days over the past eight quarters. Consistency in DSO can indicate effective credit management practices and prompt collection efforts.

Overall, while the recent increase in DSO in Q4 2023 warrants attention, Clearwater Paper Corp's historical DSO trend suggests a generally sound accounts receivable management strategy. Further monitoring of DSO in upcoming quarters will be crucial to assess the company's ability to efficiently convert sales into cash.