AeroVironment Inc (AVAV)
Days of sales outstanding (DSO)
| Apr 30, 2024 | Jan 27, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 30, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | Apr 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | Apr 30, 2020 | Jul 27, 2019 | Apr 30, 2019 | Oct 27, 2018 | Jul 28, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 2.65 | 3.36 | 2.95 | 3.13 | 2.79 | 2.89 | 3.47 | 3.41 | 2.94 | 2.88 | 3.00 | 3.21 | 3.36 | 3.97 | — | 2.56 | 3.59 | 4.20 | 4.02 | 4.29 | |
| DSO | days | 137.64 | 108.70 | 123.82 | 116.66 | 130.79 | 126.08 | 105.29 | 107.11 | 124.02 | 126.76 | 121.66 | 113.87 | 108.59 | 91.90 | — | 142.46 | 101.55 | 86.98 | 90.72 | 85.13 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 2.65
= 137.64
Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates faster collection of receivables, which is generally favorable for cash flow management.
AeroVironment Inc's DSO has shown some fluctuation over the past few quarters. In the most recent quarter, the DSO was 137.64 days, significantly higher compared to the previous quarter's DSO of 108.70 days. This increase suggests that AeroVironment Inc is taking longer to collect its accounts receivable, which may raise concerns about its ability to manage cash flow efficiently.
Looking at the historical trend, AeroVironment Inc has experienced variability in its DSO, with fluctuations between 86.98 days to 142.46 days over the past few years. This inconsistency may indicate challenges in effectively managing accounts receivable and collections processes.
It would be important for AeroVironment Inc to closely monitor and address the factors contributing to the high DSO in order to improve cash flow management and overall financial performance. This may involve implementing more efficient credit and collection policies, enhancing customer relationships, and closely monitoring payment terms and overdue accounts.
Peer comparison
Apr 30, 2024