Sterling Construction Company Inc (STRL)
Days of sales outstanding (DSO)
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.37 | 6.22 | 5.04 | 4.53 | 5.28 | 5.50 | 4.32 | 4.57 | 5.20 | 4.98 | 3.76 | 4.05 | 5.03 | 4.76 | 4.69 | 4.59 | 5.19 | 5.12 | 4.19 | 4.00 | |
| DSO | days | 49.52 | 58.71 | 72.45 | 80.65 | 69.14 | 66.36 | 84.56 | 79.92 | 70.21 | 73.24 | 97.03 | 90.23 | 72.61 | 76.69 | 77.85 | 79.60 | 70.29 | 71.36 | 87.10 | 91.28 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.37
= 49.52
The analysis of Sterling Construction Company Inc.'s Days of Sales Outstanding (DSO) over the specified periods reveals notable fluctuations and an overall downward trend toward the most recent data points.
In the fiscal year ending June 30, 2020, the DSO was approximately 91.28 days, indicating that, on average, it took around three months to collect receivables. This period saw a decrease during the subsequent quarters, reaching a low of 70.29 days by March 31, 2021. The decline suggests an improvement in the company's receivables collection efficiency during this timeframe.
However, starting in the second half of 2021, the DSO experienced an upward movement, peaking at 97.03 days on September 30, 2022. This increase indicates a lengthening of the receivables collection period, which could be associated with factors such as extended credit terms, delays in payment by clients, or changes in the company's credit policies.
Following this peak, the DSO demonstrated variability but generally trended downward, with some fluctuations. By December 31, 2022, it had decreased to approximately 73.24 days, and further reductions were observed by March 31, 2023 (70.21 days). The decline continued into 2024, with the DSO reaching as low as 58.71 days on December 31, 2024, signifying potentially improved collection efforts or shifts in customer payment behaviors.
The most recent data point from March 31, 2025, indicates a DSO of approximately 49.52 days, reflecting a significant reduction from earlier peaks and suggesting a substantial enhancement in the company's accounts receivable collection efficiency. This decreasing trend signals better cash flow management and potentially improved credit standards or customer payment performance.
Overall, while periods of increased DSO indicate challenges or delays in receivables collection, the recent consistent reduction suggests that Sterling Construction Company Inc. has been effective in streamlining their collection processes or adjusting credit terms to reduce the average time to convert receivables into cash.
Peer comparison
Mar 31, 2025