Fastenal Company (FAST)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.81 | 6.75 | 6.87 | 6.67 | 7.33 | |
| DSO | days | 53.60 | 54.08 | 53.10 | 54.74 | 49.80 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.81
= 53.60
Fastenal Company's Days Sales Outstanding (DSO) is a measure of how efficiently the company collects its accounts receivable. The DSO trend for Fastenal over the past five years shows a slight increase from 49.80 days as of December 31, 2020, to 53.60 days as of December 31, 2024.
Typically, a higher DSO indicates that the company is taking longer to collect payments from its customers, which may signal potential liquidity issues or inefficiencies in its credit and collection process.
Fastenal's DSO has fluctuated over the years but has generally remained within a relatively narrow range, suggesting a stable accounts receivable management strategy. However, it would be beneficial for the company to closely monitor this metric to ensure efficient cash flow management and timely collection of outstanding receivables in the future.
Peer comparison
Dec 31, 2024