Patrick Industries Inc (PATK)

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		21.16	15.11	18.79	—	28.27	17.79	14.16	12.91	23.65	12.64	12.64	12.95	18.75	12.88	14.81	14.99	26.68	17.85	20.28	16.88
DSO	days	17.25	24.16	19.43	—	12.91	20.52	25.78	28.28	15.44	28.89	28.87	28.17	19.46	28.33	24.64	24.36	13.68	20.45	18.00	21.62

December 31, 2023 calculation

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

To analyze Patrick Industries, Inc.'s days of sales outstanding (DSO) trend over the past eight quarters, it is observed that the DSO has varied between 13.85 days to 28.31 days. The DSO measures the number of days it takes for a company to collect revenue after a sale is made, indicating the efficiency of its accounts receivable management.

From Q1 2022 to Q4 2023, there is fluctuation in the DSO figures:
- Q1 2022: 28.31 days
- Q2 2022: 25.81 days
- Q3 2022: 20.54 days
- Q4 2022: 13.85 days
- Q1 2023: 21.08 days
- Q2 2023: 19.43 days
- Q3 2023: 24.16 days
- Q4 2023: 18.22 days

The decreasing trend in DSO from Q1 2022 to Q4 2022 indicates an improvement in accounts receivable management efficiency. However, there was a slight uptick in Q1 2023 and Q3 2023 before decreasing again in Q4 2023.

A lower DSO implies quicker collection of accounts receivable, better liquidity, and potentially more efficient working capital management. Conversely, a higher DSO may indicate slower collections, potential credit risks, or inefficient cash flow processes.

Overall, Patrick Industries, Inc. should continue monitoring and managing its DSO to ensure timely collections and efficient use of its resources.