Nucor Corp (NUE)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		11.67	11.50	9.42	8.69	10.38
DSO	days	31.27	31.74	38.73	42.01	35.15

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.67
= 31.27

The Days of Sales Outstanding (DSO) metric measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates faster collection of receivables, which is generally seen as a positive measure of liquidity and efficiency in managing credit sales.

Analyzing Nucor Corp.'s DSO over the past five years reveals a generally positive trend. In 2023, the DSO decreased to 31.05 days from 31.57 days in 2022, indicating an improvement in the collection of receivables. This may suggest more efficient credit management or a stronger customer base with faster payment cycles.

Comparing the latest DSO to previous years, there has been a noticeable decline from 38.56 days in 2021 and 41.66 days in 2020, further supporting the trend of quicker collections. However, it is worth noting that the DSO was lower at 34.90 days in 2019.

Overall, the trend of decreasing DSO over the past few years for Nucor Corp. is a positive indication of effective accounts receivable management and potential improvements in cash flow. Further monitoring of this ratio would be beneficial to assess the company's ongoing ability to efficiently collect outstanding debts and manage liquidity effectively.