Comfort Systems USA Inc (FIX)
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 | 33.84 | 24.68 | 95.66 | 139.85 | 0.86 | 53.24 | 58.99 | 51.01 | 0.81 | 130.39 | 95.39 | 95.44 | 0.91 | 79.69 | 137.38 | 155.07 | 1.03 | 131.08 | 118.78 | 287.59 | |
| DSO | days | 10.79 | 14.79 | 3.82 | 2.61 | 425.66 | 6.86 | 6.19 | 7.16 | 447.92 | 2.80 | 3.83 | 3.82 | 400.94 | 4.58 | 2.66 | 2.35 | 355.79 | 2.78 | 3.07 | 1.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 33.84
= 10.79
To analyze the Days Sales Outstanding (DSO) of Comfort Systems USA, Inc., we can look at the trend over the past eight quarters.
The DSO measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates faster collection of accounts receivable, which is generally considered favorable as it signifies efficient cash flow management.
Looking at the data provided, we observe that the DSO fluctuated over the quarters, ranging from a low of 102.85 days in Q4 2022 to a high of 115.98 days in Q3 2023. The trend shows a slight increase in DSO in recent quarters, indicating that the company may be taking longer to collect payments from customers.
The average DSO over the eight quarters is approximately 110.02 days, suggesting that, on average, it takes Comfort Systems USA, Inc. around 110 days to collect its accounts receivable.
It is important for the company to monitor and manage its DSO effectively as a consistently high DSO can tie up cash flow and impact liquidity. By implementing strategies to expedite the collection of receivables, the company can improve its cash conversion cycle and overall financial performance.
Peer comparison
Dec 31, 2023