Fluor Corporation (FLR)
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 | 13.61 | 13.09 | 12.91 | 13.21 | 12.39 | 13.10 | 13.17 | 13.49 | 15.19 | 16.46 | 15.42 | 16.01 | 11.98 | 14.12 | 14.36 | 15.38 | 16.11 | 16.12 | 10.78 | 11.49 | |
| DSO | days | 26.82 | 27.89 | 28.28 | 27.63 | 29.45 | 27.87 | 27.71 | 27.05 | 24.03 | 22.17 | 23.68 | 22.80 | 30.46 | 25.85 | 25.41 | 23.74 | 22.66 | 22.65 | 33.86 | 31.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.61
= 26.82
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO value is generally preferred as it signifies a faster collection of accounts receivable, thus improving the company's cash flow.
Analyzing the trend of DSO for Fluor Corporation over the past eight quarters reveals some fluctuations in the collection efficiency. In Q4 2023, Fluor Corporation had a DSO of 26.82 days, which was slightly lower than the previous quarter (Q3 2023) at 27.89 days. This decrease in DSO indicates that the company was able to collect payments more quickly from its customers during this period.
Looking further back, the DSO values have shown variability over the quarters, with some quarters exhibiting lower DSO values (indicating efficient collections) and others showing higher values (suggesting slower collections). This fluctuation could be influenced by various factors such as the company's credit policies, effectiveness of its accounts receivable management, industry dynamics, and overall economic conditions.
It is important for Fluor Corporation to closely monitor its DSO trend and strive to maintain a balance between timely collections and maintaining strong customer relationships. By efficiently managing its accounts receivable, the company can optimize its cash flow and overall financial health.
Peer comparison
Dec 31, 2023