American Woodmark Corporation (AMWD)
Days of sales outstanding (DSO)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.72 | 17.34 | 11.83 | 11.87 | 12.96 | |
| DSO | days | 23.23 | 21.05 | 30.85 | 30.74 | 28.15 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.72
= 23.23
American Woodmark Corporation's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable.
Over the past five years, there has been fluctuation in the DSO for American Woodmark Corporation. In 2024, the DSO decreased to 23.23 days from 21.05 days in 2023, indicating an improvement in the company's collections efficiency. This trend is positive as it suggests that the company is collecting its receivables more quickly.
Comparing the DSO to 2022 and 2021, where it was 30.85 days and 30.74 days respectively, it is evident that there has been a notable improvement in 2024. This decrease in DSO indicates that the company may have implemented better credit policies or improved its collections processes, leading to a more efficient use of its accounts receivable.
Looking at the trend over the last five years, the DSO in 2019 was 28.15 days, which suggests that the company has made progress in managing its receivables since then. It is important for American Woodmark Corporation to continue monitoring and managing its DSO effectively to ensure timely collection of receivables and maintain healthy cash flows.