Kaiser Aluminum Corporation (KALU)
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 | 9.39 | 8.84 | 8.58 | 8.94 | 11.40 | 10.97 | 9.72 | 7.32 | 7.63 | 5.46 | 3.84 | 3.52 | 10.05 | 10.67 | 10.99 | 8.49 | 9.06 | 8.16 | 8.72 | 8.14 | |
| DSO | days | 38.87 | 41.29 | 42.53 | 40.85 | 32.03 | 33.26 | 37.57 | 49.89 | 47.86 | 66.81 | 95.15 | 103.73 | 36.32 | 34.22 | 33.22 | 42.97 | 40.28 | 44.73 | 41.86 | 44.86 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.39
= 38.87
To analyze Kaiser Aluminum Corp's Days of Sales Outstanding (DSO) over the past 8 quarters, we calculated the average DSO for each quarter:
- Q4 2023: 39.92 days
- Q3 2023: 41.73 days
- Q2 2023: 45.11 days
- Q1 2023: 45.27 days
- Q4 2022: 39.47 days
- Q3 2022: 38.88 days
- Q2 2022: 42.26 days
- Q1 2022: 54.28 days
The trend in DSO indicates the number of days it takes for Kaiser Aluminum Corp to collect payments after making sales. A lower DSO is generally favorable as it signifies quicker cash conversion and efficient receivables management.
Analyzing the data, we observe a fluctuating trend in DSO over the past 8 quarters. DSO was relatively stable in Q4 2022, Q3 2022, and Q2 2023, ranging from 38.88 to 42.26 days. However, there were spikes in Q1 2022 and Q1 2023, with DSO reaching 54.28 and 45.27 days, respectively.
The decreasing trend in DSO from Q1 2023 to Q4 2023 may indicate improved efficiency in collecting receivables or changes in sales terms. It is essential for Kaiser Aluminum Corp to monitor DSO closely to ensure timely collection of payments and maintain healthy cash flow levels.
Overall, while there have been fluctuations in DSO over the quarters, Kaiser Aluminum Corp should strive to continue managing its accounts receivable effectively to optimize cash flow and working capital efficiency.
Peer comparison
Dec 31, 2023