Trex Company Inc (TREX)
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 | 13.00 | 8.41 | 4.62 | 3.29 | 21.53 | 5.34 | 3.40 | 3.12 | 8.94 | 13.54 | 7.63 | 6.40 | 7.90 | 4.22 | 3.75 | 2.99 | 7.70 | 3.23 | 3.13 | 3.17 | |
| DSO | days | 28.07 | 43.40 | 78.93 | 111.05 | 16.95 | 68.33 | 107.40 | 116.98 | 40.84 | 26.95 | 47.84 | 57.03 | 46.20 | 86.44 | 97.33 | 121.96 | 47.43 | 113.04 | 116.59 | 114.96 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.00
= 28.07
The Days Sales Outstanding (DSO) ratio for Trex Company Inc has shown fluctuations over the reporting periods. DSO is a metric that measures the average number of days it takes a company to collect revenue after a sale has been made. A lower DSO indicates that the company is collecting payments from customers more quickly.
From March 2020 to June 2020, DSO increased slightly, indicating a slower collection of receivables. However, from September 2020 to December 2020, there was a substantial decrease in DSO, suggesting that the company improved its collection efficiency significantly during that period.
The trend continued into 2021, with DSO increasing again in March 2021 and peaking in June 2021. However, the company managed to reduce DSO in the following quarters, reaching its lowest level of 16.95 days by the end of December 2023. This indicates a strong improvement in the company's accounts receivable management.
From March 2024 onwards, there was a gradual increase in DSO, suggesting a slight deterioration in the company's collection efficiency. Overall, despite some fluctuations, the company has shown the ability to effectively manage its accounts receivable over the reporting periods, with periods of improvement and some temporary setbacks.
Peer comparison
Dec 31, 2024