Ufp Industries Inc (UFPI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.47 | 14.79 | 11.63 | 10.82 | 11.70 | |
| DSO | days | 29.27 | 24.67 | 31.39 | 33.73 | 31.19 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.47
= 29.27
Ufp Industries Inc's Days of Sales Outstanding (DSO) has varied over the past five years, indicating different efficiency levels in collecting receivables. The DSO was 29.27 days as of December 31, 2023, slightly higher than the previous year's 24.67 days. This increase suggests a potential delay in collecting sales proceeds from customers compared to the prior year. However, when compared to 2021 and 2020, the current DSO still reflects a more efficient collection process.
In general, a lower DSO is favorable as it indicates quicker collection of accounts receivable. Monitoring DSO trends can provide insights into the company's cash flow management and effectiveness in credit control. Further analysis of Ufp Industries Inc's receivables turnover ratio and industry benchmarks can help contextualize the DSO performance and identify areas for improvement in working capital management.