CSW Industrials Inc (CSWI)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.56 | 6.17 | 5.10 | 4.34 | 5.15 | |
| DSO | days | 65.68 | 59.12 | 71.55 | 84.19 | 70.83 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.56
= 65.68
The Days Sales Outstanding (DSO) ratio for CSW Industrials Inc has shown some fluctuations over the past five years. In the most recent year ended March 31, 2024, the DSO was 65.46 days, representing a slight increase from the previous year. This indicates that, on average, it took the company approximately 65.46 days to collect its accounts receivable.
Comparing the DSO figures over the five-year period, we observe that there has been variability in the collection period. The DSO was relatively low in the year ended March 31, 2023, at 59.12 days, demonstrating an efficient collection process. However, the DSO increased in the subsequent years, reaching its peak at 84.19 days in the year ended March 31, 2021, before showing a downward trend in the latest year.
A higher DSO may suggest that the company is taking a longer time to collect payments from its customers, which could potentially impact cash flow and liquidity. On the other hand, a lower DSO indicates a more efficient collection process, which is generally favorable.
It is essential for CSW Industrials Inc to monitor its DSO closely and strive to optimize its accounts receivable management to ensure timely collections and maintain healthy cash flows. Further analysis of the reasons behind the fluctuations in DSO could provide valuable insights for the company's financial performance and operational efficiency.
Peer comparison
Mar 31, 2024