Taylor Morn Home (TMHC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
The days of sales outstanding (DSO) for Taylor Morrison Home Corp. have shown a gradual increase over the past five years. In 2019, the DSO was at its lowest at 5.40 days, indicating that, on average, it took the company approximately 5.40 days to collect its accounts receivable.
However, there has been a steady upward trend in DSO since then. By the end of 2023, the DSO had increased to 9.08 days, reflecting a longer period for the company to collect its accounts receivable compared to previous years.
The increase in DSO over the years may suggest a potential deterioration in the company's accounts receivable collection process. A higher DSO could indicate issues such as lenient credit policies, ineffective collection procedures, or possibly difficulties faced by customers in making timely payments.
It would be prudent for Taylor Morrison Home Corp. to closely monitor and address the factors contributing to the rising DSO in order to improve liquidity management and maintain healthy cash flows.
Peer comparison
Dec 31, 2023