Terex Corporation (TEX)

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		9.40	7.98	7.31	7.38	8.07	7.89	7.27	7.66	7.66	7.17	6.32	6.36	8.07	7.87	9.77	10.07	10.83	8.32	6.67	6.41
DSO	days	38.81	45.75	49.96	49.45	45.24	46.26	50.20	47.66	47.68	50.87	57.73	57.36	45.23	46.36	37.34	36.23	33.70	43.84	54.68	56.91

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.40
= 38.81

To analyze Terex Corp.'s days of sales outstanding (DSO) over the specified quarters, we observe a fluctuating trend in the company's DSO metric. In Q4 2023, the DSO decreased to 38.81 days compared to the prior quarter, Q3 2023, where the DSO was higher at 45.75 days. This reduction suggests that Terex Corp. is collecting its accounts receivable more efficiently in the most recent quarter.

Looking further back, we note that the DSO was even higher in Q2 2023 and Q1 2023 at 49.96 days and 49.45 days, respectively. This indicates a positive trend of improving collections efficiency over the last two quarters.

Comparing the current DSO of Q4 2023 to the same period in the previous year, Q4 2022, we observe a slight improvement from 45.24 days to 38.81 days. This demonstrates that Terex Corp. has become more effective in collecting outstanding payments from customers compared to the same quarter in the prior year.

Additionally, when analyzing the historical DSO data, we see a general trend of fluctuation within a certain range over the past eight quarters, with some quarters showing higher DSO values than others. It is essential for Terex Corp. to monitor and manage its DSO effectively to ensure timely collection of accounts receivable and maintain healthy cash flow levels.