Nucor Corp (NUE)

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		11.75	10.42	9.67	—	11.56	—	—	—	9.47	—	—	—	—	—	—	—	—	—	—	—
DSO	days	31.05	35.01	37.76	—	31.57	—	—	—	38.56	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.75
= 31.05

The Days of Sales Outstanding (DSO) is a metric used to measure how efficiently a company collects payments from its customers. It indicates the average number of days it takes for a company to collect revenue after making a sale.

Analyzing Nucor Corp.'s DSO over the past eight quarters, we observe fluctuations in the collection efficiency. In Q4 2023, the DSO was 31.05 days, representing a reduction from the previous quarter. This decrease suggests that Nucor Corp. improved its collection process and collected payments from customers more swiftly.

Comparing Q4 2023 to the same period in the previous year (Q4 2022), there has been a slight improvement, with a decrease of 0.52 days in DSO. This implies that Nucor Corp. has been more effective in collecting revenues timely over the year.

Further analyzing the trend, we notice that the DSO peaked at 40.35 days in Q2 2022, reflecting a prolonged time in collecting payments. Subsequently, the company managed to bring down the DSO to 31.05 days by Q4 2023, indicating an enhanced efficiency in collecting sales proceeds over this timeframe.

Overall, the decreasing trend in DSO over the quarters signals that Nucor Corp. has been managing its accounts receivable effectively and improving its cash flow by collecting payments more promptly. However, continuous monitoring and management of DSO will be crucial to sustain and enhance this financial efficiency in the future.