Olympic Steel Inc (ZEUS)
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 | 11.29 | 9.61 | 10.07 | 10.29 | 11.66 | 9.55 | 8.42 | 7.97 | 8.13 | 6.66 | 6.24 | 6.37 | 8.14 | 8.23 | 10.08 | 8.97 | 11.82 | 10.05 | 9.52 | 8.73 | |
| DSO | days | 32.32 | 38.00 | 36.23 | 35.48 | 31.31 | 38.24 | 43.37 | 45.78 | 44.92 | 54.82 | 58.48 | 57.27 | 44.84 | 44.36 | 36.21 | 40.68 | 30.88 | 36.32 | 38.34 | 41.80 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.29
= 32.32
To analyze the days of sales outstanding (DSO) for Olympic Steel Inc., we observe the trend over the past eight quarters:
- Q4 2023: 32.33 days
- Q3 2023: 38.00 days
- Q2 2023: 36.23 days
- Q1 2023: 35.48 days
- Q4 2022: 31.34 days
- Q3 2022: 38.27 days
- Q2 2022: 43.41 days
- Q1 2022: 45.82 days
The DSO indicates the average number of days it takes for the company to collect revenue after a sale. A lower DSO is generally favorable as it implies a quicker conversion of sales into cash.
In Q4 2023, the DSO decreased to 32.33 days, which is an improvement from the previous quarter (Q3 2023 - 38.00 days) and also lower than the DSO in Q4 2022 (31.34 days). This suggests that Olympic Steel Inc. has been more efficient in collecting sales revenue in the latest quarter.
There was a general declining trend in DSO from Q2 2022 (43.41 days) to Q4 2023 (32.33 days), indicating improved accounts receivable management efficiency over this period.
It is crucial for Olympic Steel Inc. to sustain this lower DSO trend or further reduce it to enhance liquidity and optimize working capital management. Continued monitoring and analysis of DSO will provide insights into the company's cash flow and sales collection effectiveness.
Peer comparison
Dec 31, 2023