Kirby Corporation (KEX)

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		4.60	5.79	5.69	5.48	4.41	5.41	5.54	5.53	5.29	4.60	4.79	4.82	6.89	7.69	7.20	7.03	7.49	7.59	6.52	6.76
DSO	days	79.40	63.06	64.10	66.64	82.71	67.46	65.90	65.97	69.00	79.33	76.19	75.65	53.00	47.47	50.72	51.94	48.76	48.07	55.95	54.00

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.60
= 79.40

To analyze the Days Sales Outstanding (DSO) of Kirby Corp., we will look at the trend of DSO over the past eight quarters. DSO indicates the average number of days it takes for a company to collect revenue after a sale has been made.

From Q1 2022 to Q1 2023, we observe a fluctuating trend in DSO for Kirby Corp. There was a notable increase in DSO in Q1 2023 compared to the previous quarter, which stood at 79.38 days. This suggests that Kirby Corp. took longer to collect its outstanding sales revenue in Q1 2023, potentially indicating challenges in collections or changes in customer payment behavior during that period.

Looking at the broader trend, the DSO values have shown some variability over the past two years, with values ranging from the mid-60s to mid-80s in days. The peak DSO was observed in Q3 2022 at 84.98 days, while the lowest DSO was in Q2 2023 at 68.02 days.

Overall, a lower DSO implies that Kirby Corp. is collecting revenue more quickly, which is generally favorable as it indicates efficient cash flow management. Conversely, a higher DSO may indicate issues with collecting receivables promptly, potentially impacting liquidity and working capital.

To better assess the effectiveness of the company's credit and collection policies, it would be beneficial to compare Kirby Corp.'s DSO with industry benchmarks or competitors' DSO metrics. Understanding the reasons behind fluctuations in DSO can provide insights into the company's operational efficiency and financial health.