Trex Company Inc (TREX)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 13.00 | 21.51 | 8.94 | 7.90 | 7.70 | |
| DSO | days | 28.07 | 16.97 | 40.84 | 46.20 | 47.42 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.00
= 28.07
The days of sales outstanding (DSO) for Trex Company Inc have shown a decreasing trend from 47.42 days as of December 31, 2020, to 28.07 days as of December 31, 2024. This indicates that the company has been collecting its accounts receivable more efficiently over the years.
Specifically, there was a significant improvement in DSO from 2020 to 2023, where it dropped from 47.42 days to 16.97 days. This could suggest that the company implemented more effective credit policies or improved its collections processes during this period.
However, there was a slight increase in DSO from 2023 to 2024, rising to 28.07 days. This could be due to changes in customer payment behavior, changes in the company's sales mix, or other external factors impacting collections.
Overall, the decreasing trend in DSO indicates that Trex Company Inc has been effectively managing its accounts receivable and improving its cash flow by collecting payments from customers more promptly.
Peer comparison
Dec 31, 2024