Commercial Metals Company (CMC)

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		6.80	6.85	7.48	7.02	7.06	7.41	7.43	7.27	6.71	6.37	6.76	6.62	6.02	5.63	6.18	6.25	6.17	6.32	6.07	6.12
DSO	days	53.70	53.31	48.81	52.01	51.68	49.24	49.12	50.19	54.40	57.34	53.98	55.14	60.63	64.78	59.06	58.41	59.20	57.77	60.17	59.60

August 31, 2024 calculation

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

The Days of Sales Outstanding (DSO) ratio for Commercial Metals Company has shown some fluctuations over the past few periods.

The DSO is a measure of how long it takes for the company to collect its accounts receivable from customers. A lower DSO indicates faster collection of receivables, which can be a positive sign of efficient cash flow management and effective credit policies.

Looking at the trend in Commercial Metals Company's DSO, we observe that it has been relatively stable, ranging from 48.81 days to 64.78 days over the past few quarters. This indicates that the company is able to collect its receivables within a reasonable timeframe.

The DSO figures seem to have peaked in the recent periods, with values around 60 days, which may indicate a slowdown in collections or a need for tighter credit control measures. It would be important for the company to monitor and potentially address any issues causing longer DSO periods to ensure optimal cash flow and liquidity.

Overall, while the DSO ratio has shown some variability, it is essential for Commercial Metals Company to continue monitoring and managing its accounts receivable effectively to maintain a healthy cash conversion cycle and financial stability.