Owens Corning Inc (OC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.73 | 10.01 | 8.91 | 7.54 | 9.30 | |
| DSO | days | 37.53 | 36.47 | 40.98 | 48.41 | 39.25 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.73
= 37.53
Owens Corning's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue from its customers. A lower DSO indicates faster collection of receivables, which is generally seen as a positive sign.
From 2019 to 2023, Owens Corning's DSO trend exhibited fluctuations, with some years showing improvements and others showing slight increases. In 2023, the company's DSO was 37.23 days, a slight increase from the previous year's DSO of 35.94 days.
The improvement in DSO from 2022 to 2023 suggests that Owens Corning may have effectively managed its accounts receivable and collections processes during that period. However, the company's DSO in 2023 is still lower than some previous years, such as 2020 and 2021.
Overall, Owens Corning's DSO performance indicates a relatively efficient collections process compared to previous years, but there may be ongoing opportunities to further optimize working capital management and enhance cash flow by continuing to focus on reducing DSO in the future.