Knife River Corporation (KNF)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Receivables turnover | 10.61 | ||||
| DSO | days | 34.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.61
= 34.40
Based on the data provided, Knife River Corporation had a days of sales outstanding (DSO) of 34.40 days as of December 31, 2023.
Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes a company to collect cash from its accounts receivable. A lower DSO value is generally favorable as it suggests quicker collection of cash from customers and efficient management of accounts receivable.
In the case of Knife River Corporation, a DSO of 34.40 days signifies that, on average, it takes the company approximately 34.40 days to collect payments from its customers after making a sale. This could suggest that Knife River Corporation has effective credit policies in place and a well-managed accounts receivable process.
However, it is important to track changes in DSO over time to identify any trends or potential issues. Consistent monitoring of DSO can help management assess the effectiveness of their credit and collection strategies and take corrective actions if necessary to optimize cash flow and working capital management.
Peer comparison
Dec 31, 2023