Steel Dynamics Inc (STLD)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		11.64	10.83	9.61	9.88	12.39
DSO	days	31.36	33.71	38.00	36.95	29.45

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.64
= 31.36

Days Sales Outstanding (DSO) is a key metric used to evaluate the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which is generally a positive sign.

Analyzing Steel Dynamics Inc.'s DSO over the past five years, we observe a fluctuating trend:
- In 2019, the DSO was 29.45 days, indicating strong efficiency in collecting accounts receivable.
- In 2020, there was a slight increase to 36.95 days, suggesting a potential slowdown in collections.
- By 2021, the DSO increased further to 38.00 days, signaling a longer period of time for the company to collect payments, which could impact cash flow and liquidity.
- In 2022, the DSO decreased to 33.71 days, showing some improvement from the previous year but still higher than in 2019.
- Finally, in 2023, the DSO decreased to 31.23 days, indicating a positive trend towards more efficient collections.

Overall, Steel Dynamics Inc. has shown variability in its DSO over the past five years, with improvements in certain years and increases in others. It would be important for the company to monitor and manage its accounts receivable effectively to ensure timely collection of payments and maintain healthy cash flow levels.