Stericycle Inc (SRCL)

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 4.68 5.64 6.50 6.51 6.56 5.83 5.68 5.78 6.30 6.29 6.39 6.42 6.70 6.83 7.79 7.55 5.99 5.93 5.48 5.69
DSO days 78.02 64.68 56.12 56.03 55.67 62.60 64.22 63.15 57.98 58.04 57.16 56.85 54.45 53.45 46.87 48.32 60.93 61.53 66.66 64.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.68
= 78.02

To analyze Stericycle Inc.'s Days Sales Outstanding (DSO) over the past eight quarters, we observe a trend of fluctuations in the collection period for accounts receivable.

In the most recent quarter, Q4 2023, the DSO stood at 76.03 days, which marks a significant increase compared to the previous quarter's 63.47 days in Q3 2023. This prolonged collection period may indicate a delay in collecting sales revenue from customers or potential issues with credit terms.

Looking back further, we see that the DSO reached its lowest point in Q2 2023 at 55.17 days, signaling efficient collections during that period. However, it increased slightly to 56.19 days in Q1 2023.

Comparing the current DSO of Q4 2023 to the same quarter last year, Q4 2022, which was 55.94 days, there seems to be a considerable worsening in collections efficiency.

Furthermore, a general observation reveals that the company's DSO has experienced fluctuations above and below the 60-day mark over the past two years, indicating variability in the company's collection practices and possibly the creditworthiness of its customers.

In summary, while there have been periods of improved efficiency in collections, the recent increase in DSO to 76.03 days in Q4 2023 may raise concerns about the company's receivables management and its impact on cash flows and working capital. Additional analysis is recommended to identify the underlying factors contributing to these fluctuations and to implement strategies to optimize the DSO metric.


Peer comparison

Dec 31, 2023

Company name
Symbol
DSO
Stericycle Inc
SRCL
78.02
Clean Harbors Inc
CLH
66.50