American Eagle Outfitters Inc (AEO)

Days of sales outstanding (DSO)

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Receivables turnover 21.22 19.77
DSO days 17.20 18.46

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days Sales Outstanding (DSO) is a measure of how efficiently a company collects revenue from its credit sales. It is calculated by dividing accounts receivable by average daily sales. Lower DSO indicates faster collections and better liquidity.

Based on the provided data for American Eagle Outfitters Inc:
- DSO on January 28, 2023, was 18.46 days, indicating that on average, it took the company approximately 18.46 days to collect its accounts receivable.
- There is no data available for DSO on January 31, 2023, and January 31, 2024.
- DSO on February 3, 2024, was 17.20 days, showing a slight improvement in the company's collection efficiency.
- There is no data available for DSO on January 31, 2025.

The fluctuation in DSO over the years could be due to changes in the company's credit policies, customer payment behavior, or overall economic conditions. It is essential for American Eagle Outfitters Inc to closely monitor its DSO to ensure timely collection of receivables, maintain healthy cash flow, and assess its credit risk exposure.