CSW Industrials Inc (CSWI)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.22 | 5.71 | 5.57 | 7.44 | 6.13 | 5.99 | 6.17 | 7.13 | 5.57 | 4.62 | 5.10 | 6.46 | 5.02 | 4.37 | 4.34 | 5.13 | 5.40 | 5.24 | 5.15 | 6.58 | |
| DSO | days | 58.69 | 63.97 | 65.57 | 49.06 | 59.59 | 60.93 | 59.12 | 51.22 | 65.58 | 78.96 | 71.55 | 56.47 | 72.75 | 83.46 | 84.19 | 71.21 | 67.64 | 69.66 | 70.81 | 55.47 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.22
= 58.69
Days of Sales Outstanding (DSO) is a crucial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. Analyzing the DSO trend for CSW Industrials Inc based on the provided data shows fluctuations over the past few quarters.
The DSO for CSW Industrials Inc has varied between 49.06 days to 84.19 days in the past eight quarters. A lower DSO is generally considered favorable as it signifies quicker collections and more efficient cash flow management. Conversely, a higher DSO may point towards slower collections and potential liquidity challenges.
Looking at the trend, we observe an increase in DSO from the last quarter of 2020 to the second quarter of 2022, peaking at 78.96 days in the third quarter of 2022. Subsequently, there was a decrease in DSO in the following quarters, reaching a low of 49.06 days in the fourth quarter of 2023. However, there was an upward trend in DSO in the recent quarters, reaching 65.57 days in the first quarter of 2024.
It is essential for CSW Industrials Inc to monitor and manage its DSO effectively to ensure timely collections and optimal cash flow. Analyzing the reasons behind fluctuations in DSO, such as changes in credit policies, customer payment behaviors, or industry trends, can provide insights for enhancing working capital management and overall financial performance.
Peer comparison
Sep 30, 2024