Reliance Steel & Aluminum Co (RS)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.82 | 10.63 | 8.37 | 9.49 | 9.93 | |
| DSO | days | 37.18 | 34.35 | 43.59 | 38.46 | 36.75 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.82
= 37.18
The days of sales outstanding (DSO) for Reliance Steel & Aluminum Co. have fluctuated over the past five years. In 2023, the DSO was 37.18 days, slightly higher than in 2022 when it stood at 34.35 days. This indicates that it took the company approximately 37.18 days to collect its accounts receivable in 2023, compared to 34.35 days in 2022.
When we compare the DSO to earlier years, we see that the DSO was lower in 2022 compared to 2021 when it was 43.59 days. The DSO in 2020 was 38.46 days, and in 2019, it was 36.75 days. The trend over the period suggests some variability in the collection period, with the lowest DSO observed in 2019.
Overall, a lower DSO indicates that the company is collecting its accounts receivable more efficiently, which is generally positive as it results in quicker cash inflows. On the other hand, a higher DSO may point to potential issues with collecting receivables promptly, impacting cash flows and liquidity. Monitoring the DSO trend can provide insights into the company's credit policies, collection effectiveness, and overall liquidity position.
Peer comparison
Dec 31, 2023