Vulcan Materials Company (VMC)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | 6.48 | 6.53 | 7.61 | 8.65 | 5.93 | 5.95 | 6.56 | 7.09 | 5.46 | 7.15 | 8.22 | 9.47 | 7.56 | 7.15 | 8.34 | 9.26 | 6.66 | 6.67 | 8.07 | |
| DSO | days | — | 56.30 | 55.86 | 47.94 | 42.19 | 61.56 | 61.31 | 55.61 | 51.49 | 66.87 | 51.01 | 44.40 | 38.55 | 48.30 | 51.04 | 43.79 | 39.42 | 54.77 | 54.71 | 45.21 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO typically reflects a quicker collection time, indicating better efficiency in managing accounts receivable.
Analyzing Vulcan Materials Co's DSO over the past eight quarters shows fluctuations in their collection efficiency. In Q4 2023, the DSO decreased to 41.73 days from 56.30 days in Q3 2023, which is a positive sign as it suggests faster collections. This improvement may indicate proactive measures in managing accounts receivable or changes in the company's credit policies.
Comparing the latest DSO to the same quarter in the previous year (Q4 2022), where it was 52.16 days, we see further improvement, indicating potential enhancements in Vulcan Materials Co's accounts receivable management practices.
However, it is important to note that while a lower DSO can be positive, an extremely low DSO could also indicate overly aggressive credit policies that may lead to potential issues with customer satisfaction or liquidity.
Overall, the recent decrease in Vulcan Materials Co's DSO is a favorable trend, suggesting improved efficiency in collecting revenue, which could positively impact the company's cash flow and working capital management. Monitoring DSO over time can help assess the effectiveness of Vulcan Materials Co's accounts receivable management strategies and their impact on overall financial performance.
Peer comparison
Dec 31, 2023