Norfolk Southern Corporation (NSC)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.75 | 9.04 | 9.68 | 9.42 | 9.97 | 9.60 | 11.01 | 10.48 | 10.50 | 10.15 | 9.27 | 10.06 | 10.75 | 10.99 | 10.67 | 9.89 | 11.00 | 10.69 | 11.90 | 11.95 | |
| DSO | days | 33.94 | 40.36 | 37.69 | 38.77 | 36.61 | 38.02 | 33.14 | 34.82 | 34.76 | 35.97 | 39.36 | 36.30 | 33.94 | 33.22 | 34.19 | 36.91 | 33.20 | 34.14 | 30.67 | 30.54 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.75
= 33.94
The Days of Sales Outstanding (DSO) for Norfolk Southern Corporation fluctuated over the period from March 31, 2020, to December 31, 2024. DSO represents the average number of days it takes for the company to collect payment after making a sale.
The DSO values ranged from a low of 30.54 days on March 31, 2020, to a high of 40.36 days on September 30, 2024. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficient accounts receivable management. Conversely, a higher DSO may imply slower collections, potentially indicating liquidity or credit risks.
Analysts typically examine trends in DSO over time to assess changes in the company's credit policy, customer payment behavior, and overall efficiency in managing accounts receivable. It is essential for Norfolk Southern Corporation to monitor and manage its DSO effectively to ensure steady cash flows and financial stability.
Peer comparison
Dec 31, 2024
See also:
Norfolk Southern Corporation Average Receivable Collection Period (Quarterly Data)