Warrior Met Coal Inc (HCC)
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 | 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 | 11.21 | 11.95 | 8.26 | 6.49 | |
| DSO | days | 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 | 32.57 | 30.56 | 44.18 | 56.22 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.43
= 23.66
Warrior Met Coal Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. A lower DSO indicates faster payment collection and better liquidity management.
Analyzing the DSO trend over the past eight quarters, we observe fluctuations in the collection efficiency of Warrior Met Coal Inc. In Q4 2023, the DSO decreased significantly to 24.04 days from 59.04 days in Q3 2023. This suggests an improvement in the company's ability to collect payments from customers promptly.
Comparing Q4 2023 to the same period in the previous year (Q4 2022), Warrior Met Coal Inc has managed to reduce its DSO from 32.64 days to 24.04 days. This indicates a positive trend in managing accounts receivable and highlights increased efficiency in collecting cash from sales.
Overall, the declining trend in DSO reflects positively on the company's financial health and operational efficiency. However, it is important for Warrior Met Coal Inc to continue monitoring and managing its DSO to ensure sustainable liquidity and working capital management in the long term.
Peer comparison
Dec 31, 2023