Warrior Met Coal Inc (HCC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.82 | 10.74 | 9.43 | 7.99 | 15.43 | 6.13 | 7.81 | 8.95 | 11.08 | 8.29 | 5.41 | 4.60 | 8.03 | 11.64 | 12.76 | 10.09 | 8.86 | 9.53 | 8.77 | 7.31 | |
| DSO | days | 33.73 | 33.99 | 38.71 | 45.68 | 23.66 | 59.55 | 46.72 | 40.79 | 32.95 | 44.04 | 67.50 | 79.41 | 45.43 | 31.35 | 28.61 | 36.17 | 41.22 | 38.30 | 41.63 | 49.90 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.82
= 33.73
The Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days a company takes to collect revenue after a sale has been made. A lower DSO value is generally considered better as it reflects a faster collection of accounts receivable.
Analyzing the DSO trend of Warrior Met Coal Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the DSO values over this period. The DSO values ranged from a low of 23.66 days to a high of 79.41 days within this timeframe.
The DSO trend for Warrior Met Coal Inc shows some variability, with periods of improvement followed by slight increases. For example, there was a notable decrease from 49.90 days on March 31, 2020, to 28.61 days on June 30, 2021, indicating more efficient collections. However, there were instances where the DSO increased significantly, such as the spike to 79.41 days on March 31, 2022.
Overall, it is important for Warrior Met Coal Inc to closely monitor and manage its DSO to ensure efficient collections and healthy cash flow management. Strategies to reduce DSO could include implementing better credit policies, improving collection processes, and enhancing customer relationships to expedite payment cycles.
Peer comparison
Dec 31, 2024