Forward Air Corporation (FWRD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.43	8.87	7.64	8.11	8.09
DSO	days	43.32	41.16	47.76	44.99	45.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.43
= 43.32

The days of sales outstanding (DSO) for Forward Air Corporation have fluctuated over the past five years, ranging from a low of 41.16 days in 2022 to a high of 47.76 days in 2021. The DSO for the most recent period as of December 31, 2023, stands at 43.32 days.

The DSO metric indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO suggests that the company is collecting payments more quickly, which can be a positive indicator of efficient accounts receivable management. Conversely, a higher DSO may signal potential issues with credit policies, invoicing processes, or customer payment behavior.

While the DSO for Forward Air Corporation has shown some variability, it is important to compare this metric with industry benchmarks and historical trends to gain a deeper understanding of the company's credit and collection efficiency. Further analysis of the underlying factors influencing the DSO, such as changes in sales terms, customer base, or economic conditions, would provide more insight into the company's financial performance.