CSX Corporation (CSX)

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 9.97 10.03 10.84 10.64 10.96 9.67 9.16 10.21 10.81 8.90 9.31 10.43 11.00 10.30 12.34 11.52 12.12 11.09 11.11 11.20
DSO days 36.63 36.39 33.67 34.31 33.29 37.73 39.86 35.75 33.76 40.99 39.22 34.99 33.17 35.43 29.58 31.69 30.10 32.90 32.85 32.59

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.97
= 36.63

Days Sales Outstanding (DSO) is a measure of how efficiently a company is able to collect its accounts receivable. It indicates the average number of days it takes for a company to collect payment from its customers. A lower DSO value is typically considered more favorable as it suggests faster collection of receivables.

Analyzing the DSO trend for CSX Corp. over the past eight quarters, we observe fluctuations in the values. In Q4 2023, the DSO stood at 34.69 days, slightly lower than the previous quarter at 34.72 days. While this indicates a relatively stable performance, it is crucial for the company to ensure sustained efforts to manage its receivables efficiently.

Comparing the DSO values to the prior year's quarters, we note improvements in Q4 2023 compared to Q4 2022 when the DSO was recorded at 32.27 days. This suggests a positive trend in the company's accounts receivable management over the year.

Furthermore, the DSO values in Q2 and Q3 2023 were relatively higher at 32.23 days and 36.80 days, respectively. The increase in DSO in Q3 2023 could indicate potential challenges in collecting payments promptly during that period, which may require closer attention and monitoring by the company.

Overall, while the DSO for CSX Corp. has shown fluctuations over the quarters, it is essential for the company to focus on maintaining a consistent and low DSO value to enhance its working capital management and overall financial performance.

Peer comparison

Dec 31, 2023

Company name
Symbol
DSO
CSX Corporation
CSX
36.63
Norfolk Southern Corporation
NSC
36.61
Union Pacific Corporation
UNP
32.62

See also:

CSX Corporation Average Receivable Collection Period (Quarterly Data)