NewMarket Corporation (NEU)

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		6.15	6.30	6.24	6.05	5.99	5.48	4.92	5.17	5.91	5.50	5.45	5.35	5.92	6.08	6.85	6.31	6.45	6.37	6.24	6.31
DSO	days	59.39	57.98	58.48	60.37	60.93	66.56	74.13	70.61	61.75	66.33	66.98	68.25	61.69	60.07	53.31	57.83	56.55	57.28	58.52	57.89

December 31, 2023 calculation

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

The days of sales outstanding (DSO) for NewMarket Corp. have shown a decreasing trend over the past year, indicating an improvement in the company's collection efficiency. In the most recent quarter of Q4 2023, the DSO was 58.48 days, a slight decrease from the previous quarter's 57.03 days. This suggests that NewMarket Corp. has been able to collect its accounts receivable more quickly, potentially improving its cash flow and liquidity position.

Compared to the same quarter in the previous year, Q4 2022, where the DSO was 59.89 days, there has been a noticeable improvement. Furthermore, over the past two quarters, Q3 2023 and Q4 2023, the DSO has remained relatively stable, indicating a consistent effort in managing the company's receivables effectively.

It is important to note that a lower DSO signifies that the company is efficient in collecting payments from customers, which can be a positive indicator of its financial health. NewMarket Corp.'s decreasing trend in DSO over the past year is a favorable sign, but ongoing monitoring of this metric is crucial to ensure continued operational efficiency and financial stability.