Patrick Industries Inc (PATK)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		21.16	28.26	23.61	18.65	26.62
DSO	days	17.25	12.92	15.46	19.58	13.71

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 21.16
= 17.25

To analyze Patrick Industries, Inc.'s Days Sales Outstanding (DSO) trend over the past five years, we can observe a fluctuation in the collection efficiency of accounts receivable.

- In 2019, the DSO was 16.08 days, indicating that on average, it took the company approximately 16 days to collect its accounts receivable.

- In 2020, the DSO increased to 20.41 days, signaling a potential delay in collecting receivables compared to the previous year.

- By 2021, the DSO decreased to 16.21 days, showing an improvement in collections efficiency from the previous year.

- In 2022, the DSO decreased further to 13.85 days, indicating a notable improvement in collecting receivables faster compared to the prior year.

- Finally, in 2023, the DSO increased to 18.22 days, suggesting a slight delay in collecting receivables compared to the previous year.

Overall, the trend in Patrick Industries, Inc.'s DSO over the past five years reflects some variability in the efficiency of collecting receivables, with improvements observed in some years and slight setbacks in others. Further analysis and comparison with industry benchmarks may help in assessing the company's effectiveness in managing its accounts receivable and cash flow.