Acuity Brands Inc (AYI)
Days of sales outstanding (DSO)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.71 | 7.45 | 7.05 | 7.38 | 7.80 | 6.93 | 5.98 | 6.51 | 6.82 | 6.79 | 6.05 | 6.61 | 7.23 | 7.38 | 6.65 | 7.49 | 7.00 | 7.04 | 6.55 | 6.43 | |
| DSO | days | 47.37 | 49.02 | 51.80 | 49.45 | 46.77 | 52.66 | 61.08 | 56.07 | 53.55 | 53.75 | 60.30 | 55.24 | 50.47 | 49.44 | 54.90 | 48.75 | 52.13 | 51.83 | 55.75 | 56.76 |
February 29, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.71
= 47.37
Days Sales Outstanding (DSO) is a crucial metric that indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO value is generally favorable as it indicates that the company is collecting payments more quickly.
Analyzing Acuity Brands Inc's DSO over the past 20 quarters, we observe some fluctuations in the metric. The DSO has ranged from a low of 46.77 days to a high of 61.08 days. Generally, the company has maintained its DSO below 60 days, which suggests that it has been efficient in collecting payments from its customers.
Throughout the periods presented, the trend shows some variability, with occasional increases and decreases in DSO. For example, we can see that there was a decrease in DSO from 55.24 days in August 2021 to 46.77 days in February 2023, indicating improved collection efficiency during that period.
Overall, Acuity Brands Inc's DSO seems to be well-managed, staying within a reasonable range compared to industry standards. However, any sustained increase in DSO over consecutive periods should be closely monitored, as it could indicate potential issues with accounts receivable management or changes in customer payment behavior.
Peer comparison
Feb 29, 2024