Terex Corporation (TEX)

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		7.97	7.63	7.21	7.60	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
DSO	days	45.77	47.87	50.62	48.03	38.83	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.97
= 45.77

Terex Corporation's Days Sales Outstanding (DSO) measures the average number of days it takes the company to collect payment after making a sale. Analyzing the trend in DSO over time can provide insight into the company's efficiency in collecting accounts receivable.

Based on the provided data, Terex Corporation's DSO fluctuated over the periods from March 31, 2020, to December 31, 2024. The DSO ranged from a low of 36.23 days on March 31, 2020, to a high of 57.73 days on June 30, 2021. The DSO improved to 38.83 days by December 31, 2023, before slightly increasing to 50.62 days on June 30, 2024.

A lower DSO indicates that the company is collecting payments from customers more quickly, which can signify strong accounts receivable management and efficient credit policies. Conversely, a higher DSO may suggest potential issues such as a slower collection process or customers being slow to pay.

It is essential for Terex Corporation to manage its DSO effectively to maintain healthy cash flow and working capital. Monitoring DSO over time and comparing it with industry benchmarks can help identify areas for improvement in the company's accounts receivable processes.