Valmont Industries Inc (VMI)
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 | 6.28 | 6.30 | 6.60 | 6.76 | 7.11 | 6.72 | 6.22 | 5.94 | 6.05 | 6.15 | 5.67 | 6.03 | 5.60 | 5.48 | 5.40 | 5.52 | 5.70 | 5.49 | 5.40 | 5.29 | |
| DSO | days | 58.14 | 57.89 | 55.29 | 54.03 | 51.31 | 54.28 | 58.71 | 61.43 | 60.32 | 59.38 | 64.38 | 60.48 | 65.20 | 66.63 | 67.53 | 66.15 | 64.01 | 66.50 | 67.59 | 69.02 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.28
= 58.14
Days of Sales Outstanding (DSO) is a key ratio that indicates the average number of days it takes for a company to collect its accounts receivable. A lower DSO generally indicates a faster collection of payments from customers, which can suggest efficient credit and collection practices.
Analyzing the DSO trend for Valmont Industries Inc over the past few quarters, we can observe fluctuations in the DSO ratio. The DSO has shown a downward trend from the high of 69.02 days in the first quarter of 2019 to 54.03 days by the end of the first quarter in 2023. This improvement indicates that Valmont Industries has been able to collect its receivables more efficiently over the years.
While there have been fluctuations in DSO from quarter to quarter, the overall trend suggests that Valmont Industries has been managing its accounts receivable effectively. However, it is essential to continue monitoring the DSO ratio to ensure efficient credit management and timely collection of payments from customers in the future.
Peer comparison
Dec 31, 2023