Fluor Corporation (FLR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.61 | 12.39 | 15.71 | 13.36 | 14.37 | |
| DSO | days | 26.82 | 29.45 | 23.24 | 27.32 | 25.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.61
= 26.82
Fluor Corporation's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment from its customers after making a sale. A lower DSO indicates faster collection of accounts receivable and better cash flow management.
Fluor Corporation's DSO has fluctuated over the past five years. In 2023, the DSO was 26.82 days, showing an improvement from 29.45 days in 2022. This suggests that the company became more efficient in collecting payments from customers.
Comparing the DSO to prior years, the DSO was relatively consistent in 2021 (26.45 days) compared to 2020 (27.53 days) and 2019 (27.35 days). This stability could indicate that Fluor Corporation has maintained a steady credit and collection process over these years.
Overall, the trend of decreasing DSO in 2023 is positive, as it reflects improved efficiency in collecting accounts receivable. However, it is essential for Fluor Corporation to continue monitoring and managing its DSO to ensure a healthy cash flow and liquidity position.
Peer comparison
Dec 31, 2023