TRI Pointe Homes Inc (TPH)
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 ÷ —
= —
Tri Pointe Homes Inc.'s Days Sales Outstanding (DSO) has shown an increasing trend over the past five years. The DSO was 22.07 days as of December 31, 2023, compared to 14.22 days in the previous year and 10.72 days in 2021. This indicates that the company is taking longer to collect its accounts receivable, which may raise concerns about its receivables management efficiency.
It is noteworthy that Tri Pointe Homes Inc.'s DSO was significantly higher in 2020 and 2019 (7.11 days and 8.20 days, respectively) but has since been on an upward trajectory. This trend suggests a potential deterioration in the collection process or an increase in credit sales, which could impact the company's cash flow and liquidity position.
Overall, Tri Pointe Homes Inc. should closely monitor its DSO and take necessary steps to improve its accounts receivable management to ensure timely collection and maintain a healthy working capital position.
Peer comparison
Dec 31, 2023