Norfolk Southern Corporation (NSC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.34 | 9.97 | 10.50 | 10.75 | 10.81 | |
| DSO | days | 32.19 | 36.61 | 34.76 | 33.94 | 33.78 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.34
= 32.19
To analyze Norfolk Southern Corporation's Days Sales Outstanding (DSO) over the years, we observe the following trends:
- In 2020, the DSO was 33.78 days, indicating that on average, it took the company around 33.78 days to collect revenue from its sales.
- In 2021, the DSO slightly increased to 33.94 days, suggesting a marginal delay in collecting revenue compared to the previous year.
- By the end of 2022, the DSO further rose to 34.76 days, signifying a continued trend of slower collection of sales revenue.
- The DSO peaked in 2023 at 36.61 days, indicating a significant increase in the time taken to collect revenue, which could potentially impact cash flow and liquidity.
- However, there was a noticeable improvement in 2024, with the DSO decreasing to 32.19 days, reflecting a more efficient collection process and possibly better management of accounts receivable.
Overall, the DSO trend for Norfolk Southern Corporation shows a mixed performance, with fluctuations in the time taken to collect sales revenue. It is crucial for the company to closely monitor and manage its DSO to optimize cash flow and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Average Receivable Collection Period