Owens Corning Inc (OC)
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 | 9.73 | 7.32 | 6.77 | 6.92 | 10.01 | 7.26 | 6.74 | 6.30 | 8.91 | 7.16 | 6.41 | 6.21 | 7.54 | 6.71 | 6.90 | 7.62 | 9.30 | 7.36 | 7.23 | 6.76 | |
| DSO | days | 37.53 | 49.87 | 53.92 | 52.76 | 36.47 | 50.24 | 54.13 | 57.89 | 40.98 | 51.00 | 56.95 | 58.81 | 48.41 | 54.36 | 52.92 | 47.90 | 39.25 | 49.58 | 50.50 | 53.97 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.73
= 37.53
To analyze Owens Corning's Days of Sales Outstanding (DSO) performance, we observe fluctuations in DSO over the past eight quarters. DSO measures the average number of days it takes for a company to collect payment after making a sale.
In Q4 2023, Owens Corning's DSO decreased to 37.23 days, indicating an improvement in their accounts receivable collection efficiency compared to the prior quarter. This could suggest effective credit and collection management.
The DSO increased in Q3 and Q2 2023, reaching 49.13 days and 53.13 days respectively. This rise may raise concerns about potential delays in collecting payments from customers during these periods.
In Q1 2023, DSO was 51.98 days, showing a slight increase from the previous quarter. This may suggest a longer cash conversion cycle or challenges in accounts receivable management during that quarter.
Comparing these results to the same quarters in the previous year, we observe fluctuations. For instance, in Q4 2022, DSO was 35.94 days, indicating a faster collection of receivables compared to Q4 2023. However, DSO increased to 49.54 days in Q3 2022 and further to 53.35 days in Q2 2022, showing a pattern of deterioration in accounts receivable collection efficiency during that time.
Overall, the trend in DSO for Owens Corning over the past eight quarters suggests some variability in accounts receivable management efficiency. The company may benefit from further analysis to identify the root causes of fluctuations and implement strategies to maintain a healthy balance between sales and receivables collection.