Steel Dynamics Inc (STLD)

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		11.64	10.30	9.54	10.15	10.83	9.89	8.22	8.51	9.61	8.29	8.24	7.74	9.88	10.18	11.31	10.24	12.39	11.16	10.92	10.53
DSO	days	31.36	35.43	38.24	35.97	33.71	36.91	44.43	42.87	38.00	44.01	44.31	47.18	36.95	35.87	32.27	35.65	29.45	32.69	33.43	34.68

December 31, 2023 calculation

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

Steel Dynamics Inc.'s Days of Sales Outstanding (DSO) has shown fluctuations over the past eight quarters. In Q4 2023, the DSO stood at 31.23 days, exhibiting an improvement compared to the previous quarter, Q3 2023, which had a DSO of 35.43 days. This decrease indicates that the company is collecting its accounts receivable more efficiently in Q4 2023.

Looking at a broader trend, there has been a general downward trend in DSO from Q2 2022 to Q4 2023. This trend suggests that Steel Dynamics Inc. has been improving its accounts receivable management over this period, potentially through more effective collection policies or tighter credit terms.

Although there have been fluctuations in DSO, it is essential to monitor this metric continually to ensure that the company maintains a healthy balance between sales and collections. The decreasing trend in DSO over the past few quarters is a positive indication of the company's improved efficiency in converting its receivables into cash.