AutoZone Inc (AZO)

Days of Sales Outstanding (DSO) is a crucial financial metric that measures the average number of days it takes for a company to collect on its accounts receivable. Looking at the historical DSO data for Autozone Inc., we can observe a fluctuating trend in the efficiency of the company's accounts receivable management over the past five years.

In 2023, the DSO stood at 10.88 days, showing a slight improvement compared to the previous year's 11.34 days. This suggests that Autozone Inc. was able to collect its accounts receivable more quickly in 2023, indicating enhanced efficiency in managing its credit sales.

When compared to the data from 2021 and 2020, the DSO increased marginally in 2023. Although the change is not substantial, it does signify a potential challenge in accounts receivable management.

It is noteworthy that in 2021, the company achieved a relatively low DSO of 9.44 days, indicating a particularly efficient collection process. This was followed by a slight increase in 2022, but the DSO remained relatively low compared to the other years.

On the other hand, in 2019, the DSO was at 9.51 days, which was not significantly different from 2023. This consistent performance indicates a certain level of stability in the company's accounts receivable management practices, especially when compared to the variations seen in the other years.

Overall, while Autozone Inc. experienced some fluctuations in its DSO over the past five years, the company has maintained a relatively efficient accounts receivable collection process, with only minor deviations from its historical performance. However, it is important for the company to keep a close eye on its DSO and implement strategies to ensure efficient management of its accounts receivable in the coming years.

Peer comparison

Aug 26, 2023

See also:

AutoZone Inc Average Receivable Collection Period