Eagle Materials Inc (EXP)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.17 | 12.31 | 9.11 | 8.06 | 10.61 | 11.50 | 8.72 | 8.75 | 10.17 | 11.75 | 8.62 | 8.20 | 10.15 | 9.98 | 8.08 | 8.92 | 10.83 | 11.05 | 7.49 | 4.74 | |
| DSO | days | 35.90 | 29.64 | 40.05 | 45.26 | 34.39 | 31.74 | 41.87 | 41.71 | 35.91 | 31.07 | 42.35 | 44.49 | 35.98 | 36.58 | 45.19 | 40.93 | 33.71 | 33.02 | 48.74 | 77.02 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.17
= 35.90
Eagle Materials Inc's Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for the company to collect payment from its customers after making a sale. It provides insights into the efficiency of the company's accounts receivable management.
Analyzing the historical DSO data provided, we observe fluctuations in the DSO over time. The trend shows a general decrease from June 2020 to December 2020, indicating an improvement in the company's collections process. The DSO remained relatively stable in the subsequent quarters of 2021, hovering around the mid-30s to mid-40s range.
In the later periods from December 2021 to March 2025, the DSO fluctuated around the 30-40 day range, with occasional peaks and troughs. This indicates that Eagle Materials Inc has been effectively managing its accounts receivable turnover, with shorter collection periods being more favorable.
Overall, a decreasing trend in DSO generally signifies efficient management of accounts receivable and effective credit policies. It is important for Eagle Materials Inc to continue monitoring and optimizing its collections process to ensure timely cash inflows and maintain a healthy liquidity position.