WESCO International Inc (WCC)
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 | 3.98 | 5.92 | 5.78 | 5.78 | 3.80 | 5.72 | 5.50 | 5.82 | 3.96 | 5.92 | 5.95 | 5.59 | 3.37 | 4.13 | 3.38 | 6.89 | 4.87 | 6.29 | 6.04 | 6.42 | |
| DSO | days | 91.64 | 61.64 | 63.11 | 63.14 | 95.99 | 63.80 | 66.34 | 62.69 | 92.19 | 61.67 | 61.36 | 65.27 | 108.27 | 88.35 | 107.89 | 52.98 | 74.96 | 58.03 | 60.41 | 56.86 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.98
= 91.64
The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO value indicates that the company is collecting payments faster, which is generally seen as a positive sign.
Analyzing Wesco International, Inc.'s DSO over the past eight quarters reveals a trend of fluctuation within the range of the mid to high 60s. The DSO peaked at 73.50 days in Q2 2022 and generally hovered around the high 60s in subsequent quarters. The most recent DSO for Q4 2023 decreased to 66.36 days, which may signify an improvement in the company's accounts receivable collection efficiency.
It is essential for Wesco International, Inc. to effectively manage its DSO to ensure timely receipt of payments and maintain healthy cash flows. Further monitoring of this metric in the upcoming quarters will help evaluate the company's ability to manage its receivables effectively.
Peer comparison
Dec 31, 2023