Rush Enterprises A Inc (RUSHA)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		21.48	28.00	28.36	30.85	24.10
DSO	days	17.00	13.03	12.87	11.83	15.14

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 21.48
= 17.00

Based on the provided data for Rush Enterprises A Inc, the days of sales outstanding (DSO) metric has shown some variability over the years.

In December 31, 2020, the DSO was 15.14 days, indicating that on average, it took the company approximately 15.14 days to collect its accounts receivable.

By December 31, 2021, the DSO had improved to 11.83 days, suggesting that the company was able to collect its receivables more efficiently within a shorter timeframe.

In the subsequent years, there was a slight increase in DSO, with figures of 12.87 days in 2022, 13.03 days in 2023, and 17.00 days in 2024. This trend indicates a potential slowdown in the company's accounts receivable collection process.

Overall, it is essential for Rush Enterprises A Inc to manage its DSO effectively to ensure timely collection of receivables and maintain healthy cash flow levels. An increasing DSO could indicate potential challenges in receivables management, while a decreasing DSO reflects improved efficiency in collecting outstanding payments.