Acuity Brands Inc (AYI)
Days of sales outstanding (DSO)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.81 | 7.05 | 5.98 | 6.05 | 6.65 | |
| DSO | days | 53.57 | 51.80 | 61.05 | 60.30 | 54.90 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.81
= 53.57
The days of sales outstanding (DSO) for Acuity Brands Inc have shown variability over the past five years. The company's DSO was 53.57 days as of August 31, 2024, compared to 51.80 days in the previous year. This indicates that on average, it took Acuity Brands Inc approximately 53.57 days to collect its accounts receivable in 2024.
Looking back over the five-year period, it is notable that the DSO has fluctuated. In 2022, the DSO was 61.05 days, which was higher compared to 2023 and 2024. However, in 2021 and 2020, the DSO was 60.30 days and 54.90 days, respectively. This variability may suggest changes in the company's credit policies, efficiency in collections, or the nature of its customer base.
Analyzing DSO can provide insights into the company's liquidity and efficiency in managing its accounts receivable. A lower DSO generally indicates that the company is collecting its receivables more quickly, which can improve cash flow. Conversely, a higher DSO may indicate potential issues with collecting payments promptly.
Overall, monitoring DSO trends can help assess the effectiveness of Acuity Brands Inc in managing its accounts receivable and provide valuable information for evaluating the company's financial performance and operational efficiency.
Peer comparison
Aug 31, 2024