Industry Profiles

Wholesale Distribution Credit Risk and DSO Benchmarks

Image Group
Olympic Steel photo
Flat-rolled steel awaits distribution at an Olympic Steel, Inc. warehouse. Average operating cash flow for the industry fell to 4.1% of revenue.

Six-year trends for five key credit and financial benchmarks in the wholesale distribution industry show improvements in credit risk and DSO, but operating cash flow has dipped and debt is rising.

In a sign that wholesale distributors have tightened their credit standards in line with other industries, both the bad debt allowance and days sales outstanding (DSO) benchmarks have improved for the second consecutive year, according to the 2011 annual benchmark figures for the 80 companies in the wholesale distribution industry group of the Credit Standards Index (CSI). 

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