Forward Air Corporation (FWRD)

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		9.90	8.93	10.28	9.55	8.89	7.86	7.54	7.44	7.66	7.54	6.98	7.10	8.11	8.09	9.33	8.67	8.09	7.95	8.21	8.61
DSO	days	36.86	40.90	35.50	38.21	41.04	46.46	48.39	49.04	47.65	48.39	52.26	51.44	44.99	45.10	39.10	42.10	45.11	45.91	44.47	42.38

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.90
= 36.86

Days of Sales Outstanding (DSO) is a crucial financial metric used to assess how efficiently a company is collecting its accounts receivable. Analyzing Forward Air Corporation's DSO over the past few quarters reveals important trends.

The DSO for Forward Air Corporation has shown some fluctuations over the period analyzed. From Dec 31, 2019 (42.38 days) to Dec 31, 2023 (36.86 days), there seems to be a general improvement in the company's ability to collect its receivables more quickly.

In recent quarters, the DSO has been below 40 days, which indicates that the company is collecting its accounts receivable at a faster rate. This trend suggests that Forward Air Corporation is managing its credit and collection process efficiently and effectively. A lower DSO typically implies that the company has streamlined its processes to convert sales into cash more promptly.

Overall, a decreasing trend in DSO can be seen as a positive sign of efficiency in managing accounts receivables. However, it would be important for Forward Air Corporation to continue monitoring this metric to ensure that it maintains a healthy balance between credit sales and collection efforts.