Valmont Industries Inc (VMI)
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 | 6.19 | 5.63 | 5.74 | 6.11 | 6.26 | 6.29 | 6.58 | 6.74 | 7.11 | 6.72 | 6.22 | 5.94 | 6.05 | 6.15 | 5.67 | 6.03 | 5.60 | 5.48 | 5.40 | 5.52 | |
| DSO | days | 58.95 | 64.80 | 63.57 | 59.69 | 58.32 | 58.07 | 55.46 | 54.19 | 51.31 | 54.28 | 58.71 | 61.43 | 60.32 | 59.38 | 64.38 | 60.48 | 65.20 | 66.63 | 67.53 | 66.15 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.19
= 58.95
Based on the data provided for Valmont Industries Inc, the days of sales outstanding (DSO) measure has shown fluctuations over the years. The DSO was at a relatively stable level around 65-67 days from March 2020 to December 2021, indicating that on average, it took the company around 2 months to collect its accounts receivable.
However, there was an improvement in DSO performance towards the end of 2021 and the beginning of 2022, with the metric decreasing to around 60 days, suggesting that the company was able to collect its receivables more efficiently during that period.
From June 2022 to December 2024, the DSO remained in the range of 51-64 days, showing a fluctuating pattern without a clear trend. This variability in DSO could indicate changes in the company's credit policies, customer payment behavior, or sales volume.
Overall, a lower DSO is generally preferred as it indicates faster collection of receivables and better cash flow management. Valmont Industries Inc should continue to monitor and potentially improve its DSO to ensure efficient working capital management and strong financial health.
Peer comparison
Dec 31, 2024