American Woodmark Corporation (AMWD)
Days of sales outstanding (DSO)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 15.73 | 16.65 | 16.06 | 17.19 | 17.35 | 17.68 | 13.42 | 12.04 | 11.84 | 11.51 | 11.70 | 13.74 | 11.84 | 11.10 | 10.96 | 13.07 | 12.72 | 13.28 | 13.63 | 12.96 | |
| DSO | days | 23.21 | 21.92 | 22.73 | 21.24 | 21.04 | 20.65 | 27.19 | 30.31 | 30.84 | 31.70 | 31.20 | 26.56 | 30.83 | 32.89 | 33.30 | 27.93 | 28.69 | 27.48 | 26.78 | 28.15 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.73
= 23.21
The Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect revenue after a sale has been made. A lower DSO indicates that a company is able to collect cash more quickly, which is generally favorable.
Analyzing the DSO trend for American Woodmark Corporation over the past several periods, there is a noticeable improvement in the collection period. From January 2020 to April 2024, the DSO has decreased from 28.69 days to 21.92 days. This signifies that the company has been able to collect its sales proceeds more efficiently in recent periods.
Furthermore, a DSO below the industry average suggests that American Woodmark Corporation has effective credit and collection policies in place. By reducing the time it takes to collect receivables, the company improves its cash flow and liquidity position.
It is essential for investors and stakeholders to continue monitoring the DSO metric to ensure that American Woodmark Corporation maintains its efficient collection practices and continues to optimize its cash conversion cycle.