Vulcan Materials Company (VMC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | 8.65 | 7.09 | 9.47 | 9.26 | |
| DSO | days | — | 42.19 | 51.49 | 38.55 | 39.42 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days of Sales Outstanding (DSO) measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates a faster collection of receivables, which is generally favorable as it implies better liquidity and efficient management of the company's working capital.
Analyzing Vulcan Materials Co's DSO over the past five years, we observe a fluctuation in the metric. In 2023, the DSO stands at 41.73 days, showing an improvement from the previous year's 52.16 days. This reduction suggests that the company has been able to collect its receivables more efficiently in the most recent year.
Comparing the current DSO to prior years, it is also below the levels seen in 2021 (55.14 days), 2020 (41.81 days), and 2019 (42.22 days). This trend indicates a positive development in the company's accounts receivable management over the years.
Overall, the decreasing trend in Vulcan Materials Co's DSO reflects an improvement in its accounts receivable collection process, signaling effective credit management practices and enhanced liquidity position.
Peer comparison
Dec 31, 2023