AeroVironment Inc (AVAV)
Days of sales outstanding (DSO)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 2.65 | 2.78 | 2.91 | 3.26 | 2.87 | |
| DSO | days | 137.70 | 131.09 | 125.28 | 112.11 | 127.34 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.65
= 137.70
AeroVironment Inc's Days of Sales Outstanding (DSO) measures the average number of days it takes the company to collect payment after making a sale. Over the past five years, AeroVironment's DSO has shown a fluctuating trend.
In 2024, the DSO increased to 137.70 days from the previous year's 131.09 days. This indicates that AeroVironment is taking longer to collect its receivables, which could potentially harm cash flow and liquidity.
Comparing the DSO to 2022, there has been a steady increase in the number of days it takes AeroVironment to collect payments. This trend suggests a possible issue with the company's accounts receivable management or customer credit policies.
Further analysis reveals that the DSO in 2024 is higher than in 2020 and 2021, indicating a worsening situation in collecting receivables efficiently. Management should closely monitor this trend and take appropriate actions to improve collections and cash flow.
Peer comparison
Apr 30, 2024