Werner Enterprises Inc (WERN)

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		7.34	7.35	7.57	7.24	6.31	6.48	6.37	6.41	5.89	6.07	6.33	6.89	6.88	7.02	8.02	7.91	7.50	7.69	7.55	7.95
DSO	days	49.71	49.69	48.22	50.40	57.86	56.36	57.33	56.93	61.92	60.10	57.63	53.00	53.07	51.96	45.50	46.12	48.67	47.44	48.37	45.93

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.34
= 49.71

To analyze Werner Enterprises, Inc.'s days of sales outstanding (DSO) based on the provided data, we observe a trend of fluctuating DSO figures over the past eight quarters. In Q4 2023, the DSO was 52.29 days, slightly lower than the previous quarter at 52.31 days. This suggests that the company is collecting its accounts receivable more efficiently in the most recent quarter.

Comparing Q4 2023 to the same period in the prior year, there has been a notable improvement as the DSO decreased from 60.87 days in Q4 2022 to 52.29 days in Q4 2023. This implies that Werner Enterprises has enhanced its collection processes and is converting its receivables into cash more quickly.

When looking at the historical data, we can see that the DSO reached a peak of 76.97 days in Q2 2022, and since then, there has been a steady decline in DSO. This downward trend indicates an overall improvement in the company's accounts receivable management efficiency over the past few quarters.

Overall, the decreasing trend in DSO from higher levels in previous periods to the current lower levels reflects positively on Werner Enterprises' ability to manage its receivables effectively and convert sales into cash efficiently. Continued monitoring of this trend will be essential to ensure sustained operational effectiveness in the collection process.