NewMarket Corporation (NEU)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.15	5.99	5.91	5.94	6.42
DSO	days	59.39	60.93	61.75	61.45	56.83

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.15
= 59.39

Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. In the case of NewMarket Corp., the trend in DSO over the past five years has been relatively stable, hovering around the range of 55 to 61 days.

The DSO for NewMarket Corp. was 58.48 days as of December 31, 2023, a slight decrease from the previous year's DSO of 59.89 days. This reduction suggests that the company was able to collect payments from its customers more efficiently in the most recent period.

Comparing the current DSO to that of the previous years, it is evident that NewMarket Corp. has maintained a consistent level of efficiency in managing its accounts receivable. The company's ability to keep the DSO relatively stable indicates a disciplined approach to credit management and collections, which may contribute to its overall financial health and liquidity.

Overall, NewMarket Corp.'s DSO performance reflects a consistent and effective accounts receivable management strategy, as the company has been able to maintain a reasonable collection period over the years.