Stepan Company (SCL)
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 | 5.46 | 5.76 | 6.06 | 5.82 | 6.32 | 5.77 | 5.07 | 4.91 | 5.58 | 5.38 | 5.32 | 5.12 | 6.18 | 6.16 | 6.31 | 6.26 | 6.72 | 6.65 | 6.70 | 8.38 | |
| DSO | days | 66.80 | 63.36 | 60.24 | 62.76 | 57.79 | 63.28 | 71.94 | 74.32 | 65.46 | 67.90 | 68.58 | 71.24 | 59.02 | 59.24 | 57.86 | 58.28 | 54.35 | 54.93 | 54.48 | 43.57 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.46
= 66.80
The Days of Sales Outstanding (DSO) for Stepan Co. fluctuated over the past eight quarters. In Q4 2023, the DSO was 66.24 days, showing an increase from the previous quarter where it was 63.06 days. This reflects a moderate slowdown in the company's accounts receivable collection efficiency.
Comparing the current DSO to the same quarter of the previous year, there has been an increase from 57.50 days in Q4 2022 to 66.24 days in Q4 2023, indicating a longer time taken by the company in collecting payments from customers.
Looking back over the last eight quarters, there are evident fluctuations in the DSO metric. However, in four out of the last eight quarters, the DSO remained relatively stable within a range of 59-63 days. On the other hand, Q2 and Q1 of 2022, as well as Q2 and Q1 of 2023, experienced higher DSOs, with Q2 and Q1 of 2022 and Q2 of 2023 exceeding 70 days.
Overall, the trend in the DSO suggests that there have been periods of efficient accounts receivable management intermixed with longer collection times. Stepan Co. may benefit from focusing on optimizing their credit policies and collections processes to maintain a healthy balance between sales and collections efficiency.
Peer comparison
Dec 31, 2023