Acuity Brands Inc (AYI)
Days of sales outstanding (DSO)
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.79 | 7.40 | 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 | |
| DSO | days | 53.76 | 49.35 | 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 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.79
= 53.76
Days of Sales Outstanding (DSO) is a measure that indicates how long it takes for a company to collect its accounts receivable. A lower DSO value suggests that the company is efficient in collecting payments from customers, whereas a higher DSO value may indicate potential issues with collections or credit policies.
Analyzing the DSO trend for Acuity Brands Inc over the past few quarters, we observe fluctuations in the numbers. The DSO has ranged from a low of 46.77 days to a high of 61.08 days over the past 5 years.
Looking at the most recent data, the DSO for Aug 31, 2024, was 53.76 days, which is slightly higher compared to the previous quarter (49.35 days for May 31, 2024). This increase in DSO could imply that Acuity Brands Inc is taking longer to collect payments from its customers, which may have negative implications for cash flow management and liquidity.
Overall, it would be advisable for Acuity Brands Inc to closely monitor its accounts receivable management practices to ensure timely collection of payments and optimize its working capital efficiency. Periodic evaluation and adjustment of credit policies and customer payment terms may be needed to maintain a healthy balance between sales growth and cash inflows.
Peer comparison
Aug 31, 2024