Rush Enterprises A Inc (RUSHA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		28.00	28.36	30.85	24.10	28.96
DSO	days	13.03	12.87	11.83	15.14	12.61

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 28.00
= 13.03

To analyze Rush Enterprises A Inc's days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend.

In 2019, the DSO was 12.61 days, indicating the company took approximately 12.61 days to collect its accounts receivable on average. This number improved in 2020 to 15.14 days, indicating a slower collection period. However, in 2021, the DSO decreased to 11.83 days, showing a more efficient collections process.

Subsequently, in 2022, the DSO increased slightly to 12.87 days before declining again to 13.03 days in 2023. This suggests that the company's accounts receivable collection efficiency fluctuated over the years, possibly due to changes in credit policies, customer payment behavior, or economic conditions affecting the industry.

Overall, while the DSO has shown some variability, it is essential for Rush Enterprises A Inc to manage its accounts receivable effectively to ensure timely collections and maintain healthy cash flow levels.