AZZ Incorporated (AZZ)
Days of sales outstanding (DSO)
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.74 | 7.22 | 3.15 | 3.75 | 7.63 | |
| DSO | days | 37.47 | 50.58 | 115.98 | 97.31 | 47.85 |
February 29, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.74
= 37.47
The days of sales outstanding (DSO) metric for AZZ Incorporated has varied over the past five years. In the most recent fiscal year ending February 29, 2024, the DSO was 37.47 days. This represents a decrease from the prior year's DSO of 50.58 days. The significant improvement in DSO from the prior year suggests that AZZ has been more efficient in collecting its accounts receivable, indicating better cash flow management.
Looking further back, the DSO was significantly higher in the fiscal years ending February 28, 2022, and February 28, 2021, at 115.98 days and 97.31 days, respectively. These high DSO figures indicate that AZZ took an extended period to collect payments from customers during those years, leading to potential liquidity challenges.
On the other hand, in the fiscal year ending February 29, 2020, the DSO was 47.85 days, which was higher compared to the most recent year but lower than the two preceding years. This suggests that there was some volatility in accounts receivable collection efficiency during that period.
Overall, the decreasing trend in DSO from 2021 to 2024 indicates an improvement in AZZ's accounts receivable management and cash conversion cycle. However, it is essential for the company to maintain this efficiency to ensure sustained cash flow and liquidity in the future.
Peer comparison
Feb 29, 2024