Eagle Materials Inc (EXP)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.41 | 11.28 | 8.55 | 8.59 | 9.95 | 11.60 | 8.53 | 8.10 | 10.01 | 9.84 | 7.94 | 8.76 | 11.28 | 11.52 | 7.82 | 4.96 | 5.08 | 9.92 | 7.54 | 7.73 | |
| DSO | days | 35.05 | 32.36 | 42.68 | 42.49 | 36.70 | 31.46 | 42.80 | 45.07 | 36.46 | 37.09 | 45.95 | 41.65 | 32.36 | 31.67 | 46.68 | 73.60 | 71.91 | 36.80 | 48.43 | 47.22 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.41
= 35.05
Days of Sales Outstanding (DSO) measures the average number of days it takes a company to collect payment from its customers after making a sale. A lower DSO indicates that the company is able to collect its accounts receivable more quickly, which is generally a positive sign of efficient cash flow management.
Analyzing the historical DSO data of Eagle Materials Inc, we can see fluctuations over time. In the most recent quarter ending March 31, 2024, the DSO was 35.05 days, slightly higher than the previous quarter's DSO of 32.36 days. This increase may signal a potential delay in collections or a change in the company's credit policies.
Looking back further, we can observe some peaks and valleys in DSO over the past few years. For example, in the quarter ending June 30, 2020, the DSO spiked to 73.60 days, indicating a prolonged collection period compared to other quarters. This could have been due to various reasons such as economic conditions, customer payment behavior, or internal collection processes.
On the contrary, the lowest DSO recorded was 31.46 days in the quarter ending December 31, 2022, which suggests that the company was very efficient in collecting payments during that period.
Overall, it is essential for Eagle Materials Inc to closely monitor its DSO and strive to maintain a reasonable level to ensure healthy cash flow and efficient working capital management. Analyzing trends and identifying the root causes of fluctuations in DSO can help the company improve its accounts receivable management practices and strengthen its financial position in the long run.