Simpson Manufacturing Company Inc (SSD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.85 | 6.13 | 5.84 | 6.42 | 7.77 | 6.20 | 5.54 | 6.32 | 7.83 | 6.14 | 5.06 | 5.35 | 6.78 | 6.11 | 5.65 | 5.85 | 7.66 | 5.49 | 5.08 | 6.92 | |
| DSO | days | 46.52 | 59.50 | 62.54 | 56.87 | 46.95 | 58.87 | 65.83 | 57.76 | 46.62 | 59.43 | 72.17 | 68.23 | 53.82 | 59.73 | 64.56 | 62.41 | 47.64 | 66.52 | 71.84 | 52.75 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.85
= 46.52
Days Sales Outstanding (DSO) is a metric used to measure the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which is favorable as it shows efficient accounts receivable management.
Analyzing the DSO trend for Simpson Manufacturing Company Inc over the past few years, we observe some fluctuations in the metric. The DSO for the company ranged from approximately 47 to 72 days between December 31, 2020, and June 30, 2024. Notably, there was a significant decrease in DSO from around 71.84 days on June 30, 2020, to about 47.64 days on December 31, 2020, indicating a more efficient collections process during that period.
However, the DSO increased again to around 72.17 days on June 30, 2022, before decreasing to approximately 46.52 days on December 31, 2024. This fluctuation suggests some variability in the company's ability to collect revenue promptly during these periods.
Overall, it is essential for Simpson Manufacturing Company Inc to closely monitor its DSO trend to ensure efficient management of accounts receivable and timely receipt of payments, which can improve cash flow and overall financial performance.
Peer comparison
Dec 31, 2024