Kaiser Aluminum Corporation (KALU)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.39 | 11.39 | 7.63 | 10.05 | 8.82 | |
| DSO | days | 38.87 | 32.05 | 47.86 | 36.32 | 41.39 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.39
= 38.87
The Days of Sales Outstanding (DSO) ratio for Kaiser Aluminum Corp has exhibited fluctuating trends over the past five years. In 2023, the DSO stood at 39.92 days, a slight increase from the previous year's 39.47 days. This suggests that on average, it took the company approximately 39.92 days to collect its accounts receivable in 2023.
Comparing the current DSO to historical data, it is noted that in 2021, the DSO peaked at 53.69 days, indicating a longer period for collecting accounts receivable. However, the DSO improved in 2022 and 2023, moving closer to the levels seen in 2020 and 2019.
Overall, the decreasing trend in DSO from 2021 to 2023 indicates a more efficient collection of receivables by Kaiser Aluminum Corp. The management's focus on optimizing credit policies, enhancing collection processes, or improving customer creditworthiness may have contributed to this positive trend. An efficient DSO ratio is crucial as it reflects the company's ability to convert credit sales into cash promptly, which in turn impacts liquidity and working capital management.
Peer comparison
Dec 31, 2023