American Eagle Outfitters Inc (AEO)
Days of sales outstanding (DSO)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 21.22 | 21.47 | 18.72 | 19.36 | 19.77 | 19.70 | 22.53 | 21.83 | 17.77 | 20.98 | 28.33 | 23.59 | 30.36 | 35.58 | 37.22 | 36.18 | 37.73 | 42.34 | 55.52 | 43.17 | |
| DSO | days | 17.20 | 17.00 | 19.50 | 18.85 | 18.46 | 18.53 | 16.20 | 16.72 | 20.54 | 17.40 | 12.88 | 15.47 | 12.02 | 10.26 | 9.81 | 10.09 | 9.67 | 8.62 | 6.57 | 8.45 |
February 3, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 21.22
= 17.20
American Eagle Outfitters Inc's Days of Sales Outstanding (DSO) is a metric used to evaluate the efficiency of the company's accounts receivable management. DSO measures how long it takes for the company to collect payment from its customers after making sales.
Analyzing the trend in American Eagle Outfitters Inc's DSO over the past few quarters, we can see some fluctuations. In the most recent quarter, Feb 3, 2024, the DSO stood at 17.20 days, which was slightly higher compared to the previous quarter where it was 17.00 days. This indicates that on average, the company took 17.20 days to collect receivables from customers in the latest period.
Looking back over the past few quarters, we can observe variations in DSO, with figures ranging from as low as 6.57 days to as high as 20.54 days. Generally, lower DSO values indicate better efficiency in collecting receivables, as it implies a shorter time for the company to convert sales into cash. Conversely, higher DSO figures may suggest potential issues with accounts receivable management and liquidity.
It is essential for American Eagle Outfitters Inc to monitor its DSO closely and work towards minimizing this metric over time. By improving collections processes and maintaining a healthy balance between credit sales and cash sales, the company can enhance its cash flow position and overall financial health.
Peer comparison
Feb 3, 2024