Rush Enterprises A Inc (RUSHA)

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		28.00	29.52	32.35	32.44	28.36	29.57	25.56	29.22	30.85	34.05	31.13	25.01	24.10	30.74	32.00	26.79	28.96	25.93	23.95	26.26
DSO	days	13.03	12.36	11.28	11.25	12.87	12.34	14.28	12.49	11.83	10.72	11.72	14.59	15.14	11.87	11.41	13.63	12.61	14.08	15.24	13.90

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally seen as a positive sign of efficient working capital management.

Analyzing the DSO trend for Rush Enterprises A Inc from December 2019 to December 2023, we observe fluctuations in the DSO values. The DSO has shown a general downward trend over the period, with some fluctuations quarter to quarter.

The DSO decreased from 15.24 days in March 2020 to 11.28 days in June 2023, showing an improvement in the collection efficiency of the company. This suggests that Rush Enterprises A Inc has been able to collect its accounts receivable more quickly.

However, it is important to note that the DSO increased slightly in the most recent quarter to 13.03 days, which indicates a slower collection of accounts receivable compared to the previous quarter. This may warrant further investigation to understand the underlying reasons for the increase.

Overall, while the DSO trend for Rush Enterprises A Inc has shown improvement over the period, it is essential for the company to continue monitoring and managing its accounts receivable effectively to maintain a healthy cash flow and working capital position.