American Eagle Outfitters Inc (AEO)

Days of sales outstanding (DSO)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Receivables turnover		21.22	19.77	16.90	23.59	36.18
DSO	days	17.20	18.46	21.60	15.47	10.09

February 3, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 21.22
= 17.20

American Eagle Outfitters Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. A lower DSO indicates that the company is collecting payments more quickly, which is generally positive for cash flow and liquidity.

Analyzing the trend in American Eagle Outfitters Inc's DSO over the past five years, we observe fluctuations in the metric. The DSO was highest in Jan 22, at 21.60 days, and lowest in Feb 20, at 10.09 days. This variation suggests changing efficiency in collecting payments from customers over the years.

The DSO decreased from Jan 22 to Feb 20, indicating improved efficiency in collecting payments. However, from Feb 20 to Feb 24, the DSO increased from 10.09 days to 17.20 days, reflecting a potential slowdown in collections or changes in sales terms.

It is important for American Eagle Outfitters Inc to closely monitor its DSO and strive to keep it at an optimal level to ensure healthy cash flow and operational stability. Further analysis and comparison with industry benchmarks can provide deeper insights into the company's performance in managing its accounts receivable effectively.