Sherwin-Williams Co (SHW)
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 | 9.14 | 7.68 | 7.23 | 7.62 | 8.48 | 7.38 | 6.88 | 7.19 | 8.32 | 7.43 | 7.44 | 7.66 | 8.70 | 7.21 | 7.09 | 7.81 | 8.57 | 7.20 | 6.66 | 7.53 | |
| DSO | days | 39.93 | 47.52 | 50.50 | 47.92 | 43.05 | 49.45 | 53.09 | 50.73 | 43.86 | 49.12 | 49.05 | 47.63 | 41.95 | 50.60 | 51.47 | 46.74 | 42.59 | 50.69 | 54.79 | 48.49 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.14
= 39.93
The days of sales outstanding (DSO) for Sherwin-Williams Co. have exhibited some fluctuations over the past eight quarters. In Q4 2023, the DSO stood at 39.08 days, which was lower compared to the previous quarter's 46.61 days in Q3 2023. This indicates a more efficient collection of accounts receivable during the most recent quarter.
Looking at a longer trend, DSO in Q4 2023 was also lower compared to the same quarter in the previous year, where it was 42.25 days. This suggests an improvement in the company's ability to collect sales revenue from customers within a shorter timeframe year over year.
Although there were ups and downs in DSO over the past eight quarters, the general trend seems to show a decrease in DSO, indicating an improvement in the company's accounts receivable management efficiency. Lower DSO values imply that Sherwin-Williams Co. is collecting payments from customers more quickly, which can be a positive sign of effective credit control and liquidity management.
By closely monitoring and managing DSO, Sherwin-Williams Co. may be better positioned to optimize its working capital and maintain healthy cash flow levels. It is essential for the company to continue this positive trend in DSO to ensure smooth operations and financial stability.
Peer comparison
Dec 31, 2023
See also:
Sherwin-Williams Co Average Receivable Collection Period (Quarterly Data)