Installed Building Products Inc (IBP)
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 | 3.36 | 3.45 | 3.52 | 3.40 | 3.34 | 3.20 | 3.17 | 3.10 | 3.10 | 2.90 | 2.90 | 3.03 | 3.08 | 3.38 | 3.62 | 3.61 | 3.58 | 3.38 | 3.64 | 3.67 | |
| DSO | days | 108.52 | 105.77 | 103.55 | 107.49 | 109.16 | 113.93 | 115.27 | 117.75 | 117.91 | 125.80 | 126.04 | 120.29 | 118.47 | 108.05 | 100.87 | 101.24 | 101.91 | 108.05 | 100.36 | 99.47 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.36
= 108.52
Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect revenue after a sale has been made. Installed Building Products Inc's DSO for the last 8 quarters has ranged from 52.93 days to 60.85 days.
Overall, the trend in DSO for Installed Building Products Inc has shown some variability but has generally been stable over the past two years. The lower DSO values in Q1 2023 and Q2 2023 indicate that the company was able to collect revenue more quickly during those periods, potentially with more efficient credit and collection processes.
On the other hand, the higher DSO values in Q3 2022 and Q4 2022 suggest a possible delay in collecting revenue, which could be attributed to factors such as extended payment terms or difficulties in collecting from customers.
Overall, maintaining a relatively stable DSO indicates that Installed Building Products Inc has been effective in managing its accounts receivable and ensuring timely collection of revenues. However, the company should continue to monitor and possibly improve its DSO to ensure efficient cash flow management and liquidity.
Peer comparison
Dec 31, 2023