Reliance Steel & Aluminum Co (RS)
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 | 9.82 | 9.05 | 9.08 | 9.17 | 10.63 | 9.14 | 8.25 | 7.57 | 8.37 | 7.23 | 7.02 | 7.14 | 9.49 | 9.62 | 10.56 | 8.71 | 9.93 | 8.95 | 8.49 | 8.23 | |
| DSO | days | 37.18 | 40.31 | 40.18 | 39.80 | 34.35 | 39.94 | 44.24 | 48.20 | 43.59 | 50.51 | 52.00 | 51.15 | 38.46 | 37.94 | 34.56 | 41.89 | 36.75 | 40.80 | 42.99 | 44.32 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.82
= 37.18
Reliance Steel & Aluminum Co.'s Days of Sales Outstanding (DSO) is a measure of how efficiently the company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from its customers more quickly.
From the data provided, we can observe fluctuations in the DSO over the past eight quarters. In Q4 2023, the DSO was 37.18 days, showing an improvement compared to the previous quarters. This suggests that Reliance Steel & Aluminum Co. was able to collect payments from its customers more efficiently during this period.
It is important to note that DSO can be influenced by various factors such as the company's credit policies, customer payment behavior, and industry trends. A decreasing trend in DSO over time can indicate effective credit management practices and strong customer relationships.
On the other hand, an increasing trend in DSO may raise concerns about the company's liquidity and collection processes. In Q2 2022 and Q1 2022, Reliance Steel & Aluminum Co. experienced higher DSO figures of 44.24 days and 48.20 days, respectively, which could suggest challenges in collecting accounts receivable during those periods.
Overall, a declining DSO trend indicates improved efficiency in collecting receivables and managing cash flow, while a rising DSO trend may signal potential issues that require further investigation and management attention.
Peer comparison
Dec 31, 2023