Louisiana-Pacific Corporation (LPX)
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 | 16.65 | 14.52 | 16.00 | 22.10 | 30.35 | 23.30 | 18.95 | 13.09 | 23.89 | 14.81 | 11.13 | 10.72 | 13.04 | 10.81 | 12.99 | 13.45 | 14.09 | 12.91 | 14.10 | 16.39 | |
| DSO | days | 21.92 | 25.14 | 22.81 | 16.51 | 12.03 | 15.67 | 19.26 | 27.89 | 15.28 | 24.64 | 32.79 | 34.04 | 27.99 | 33.76 | 28.10 | 27.14 | 25.91 | 28.28 | 25.88 | 22.27 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.65
= 21.92
Days Sales Outstanding (DSO) is a measure of the average number of days it takes for a company to collect revenue after a sale has been made. A higher DSO indicates that the company is taking longer to collect its accounts receivable, which could potentially lead to cash flow issues. On the other hand, a lower DSO suggests that the company is able to collect its receivables more quickly, which is generally favorable.
Analyzing the DSO trend of Louisiana-Pacific Corp. over the past eight quarters, we can observe fluctuations in the collection period. In Q4 2023, the DSO was 21.92 days, showing a decrease from the previous quarter. This decrease implies that the company improved its collection efficiency during this period.
Comparing Q4 2023 DSO to the same quarter in the previous year, there is an evident increase from 12.03 days to 21.92 days. This indicates that the company's collections took longer in Q4 2023 compared to the same period in the prior year. Moreover, the overall trend in DSO over the past eight quarters suggests some volatility, with periods of both increasing and decreasing collection times.
It is important for Louisiana-Pacific Corp. to monitor its DSO closely to ensure that it is maintaining an optimal balance between collecting receivables promptly and maintaining good customer relationships. High DSO levels can tie up working capital, while excessively low levels may indicate overly aggressive collection tactics that could strain customer relationships. By analyzing DSO trends and benchmarking against industry averages, the company can evaluate its effectiveness in managing its accounts receivable and cash flow.
Peer comparison
Dec 31, 2023