Brady Corporation (BRC)
Days of sales outstanding (DSO)
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.22 | 6.88 | 7.21 | 7.45 | 7.22 | 7.09 | 7.00 | 7.22 | 7.10 | 6.87 | 7.19 | 6.50 | 6.71 | 6.67 | 6.89 | 6.84 | 7.40 | 7.75 | 7.58 | 7.10 | |
| DSO | days | 50.53 | 53.07 | 50.60 | 48.96 | 50.53 | 51.51 | 52.13 | 50.54 | 51.42 | 53.14 | 50.74 | 56.12 | 54.39 | 54.69 | 53.01 | 53.39 | 49.34 | 47.09 | 48.15 | 51.40 |
July 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.22
= 50.53
The Days Sales Outstanding (DSO) ratio for Brady Corporation has shown slight fluctuations over the past few quarters, ranging from 47.09 days to 56.12 days. The DSO measures the average number of days it takes for the company to collect revenue after making a sale. A lower DSO indicates faster collection of accounts receivable, which is generally favorable as it implies efficient cash flow management.
Overall, Brady Corporation has maintained its DSO within a relatively stable range, indicating a consistent approach to managing accounts receivable. However, management should continuously monitor and improve collection efforts to ensure timely receipt of payments and optimize working capital. Variations in DSO could reflect changes in credit policies, customer payment behavior, or potential liquidity challenges that need attention.
Peer comparison
Jul 31, 2024