Newmont Goldcorp Corp (NEM)

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 9.48 139.71 59.66 32.91 32.26 41.67 33.82 29.78 36.12 36.33 36.28 44.14 25.14 33.94 41.43 47.80 26.12 11.61 12.08 25.15
DSO days 38.49 2.61 6.12 11.09 11.31 8.76 10.79 12.26 10.11 10.05 10.06 8.27 14.52 10.75 8.81 7.64 13.97 31.44 30.22 14.52

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.48
= 38.49

Newmont Corp's Days Sales Outstanding (DSO) measures how long it takes for the company to collect payment from its customers after making a sale. A lower DSO indicates faster collections, which may suggest efficient management of accounts receivable.

Analyzing the trend in Newmont Corp's DSO over the past eight quarters, we observe significant fluctuations. In Q4 2023, the DSO spiked to 37.92 days from a relatively low 2.58 days in Q3 2023. This increase may signal delays in receiving payments from customers, possibly due to changes in customer payment behavior, industry dynamics, or the company's credit policies.

Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we see a notable increase in DSO from 11.21 days to 37.92 days. This substantial change warrants further investigation into the underlying reasons for the elongated collection period.

Overall, Newmont Corp's recent spike in DSO suggests a potential strain on cash flows and working capital management. The company should closely monitor this metric and take proactive measures to streamline collections processes and maintain a healthy balance between sales growth and timely cash inflows.

See also:

Newmont Goldcorp Corp Average Receivable Collection Period (Quarterly Data)