Commercial Metals Company (CMC)

Days of sales outstanding (DSO)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Receivables turnover		6.80	7.06	6.71	6.03	6.15
DSO	days	53.70	51.68	54.37	60.50	59.30

August 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.80
= 53.70

To analyze Commercial Metals Company's Days of Sales Outstanding (DSO) over the years, we observe the following trends:

- The DSO for the most recent year, Aug 31, 2024, is 53.70 days, showing a slight increase compared to the previous year's DSO of 51.68 days as of Aug 31, 2023. This may indicate that the company took slightly longer to collect its accounts receivable in 2024 compared to 2023.

- Comparing the DSO for the years 2024, 2023, and 2022, we note that there was a decrease in DSO from 54.37 days in 2022 to 51.68 days in 2023. However, in 2024, the DSO increased to 53.70 days. This suggests that while there was an improvement in collections efficiency from 2022 to 2023, there was a reversal in this trend in 2024.

- Looking further back, we see a higher DSO in 2021 (60.50 days) compared to 2020 (59.30 days). The decrease in DSO from 2021 to 2020 indicates that the company improved its accounts receivable collection process in 2020.

Overall, Commercial Metals Company's DSO has fluctuated over the years, with some improvements in collections efficiency observed in certain periods. It is essential for the company to continue monitoring and managing its DSO effectively to ensure timely collections and optimize its working capital management.