CSW Industrials Inc (CSWI)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.79 | 7.48 | 6.21 | 5.70 | 5.48 | 7.44 | 6.13 | 5.99 | 6.17 | 7.13 | 5.57 | 4.62 | 5.10 | 6.46 | 5.02 | 4.37 | 4.34 | 5.12 | 5.39 | 5.24 | |
| DSO | days | 63.02 | 48.81 | 58.78 | 64.08 | 66.58 | 49.06 | 59.59 | 60.92 | 59.12 | 51.22 | 65.58 | 78.96 | 71.55 | 56.47 | 72.75 | 83.47 | 84.19 | 71.23 | 67.66 | 69.68 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.79
= 63.02
The Days Sales Outstanding (DSO) is a financial ratio that measures how long, on average, it takes a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting revenue more quickly, which is generally favorable as it improves cash flow and liquidity.
Based on the data provided for CSW Industrials Inc, we observe fluctuations in the DSO over the quarters. In March 2021 to June 2021, there was a significant increase in DSO, indicating a lengthening of the collection period. This may raise concerns about the effectiveness of the company's credit and collection policies during this period.
Subsequently, there is a decrease in DSO from September 2021 to December 2021, which shows an improvement in collecting revenue more promptly. This trend continues into 2022 with some fluctuations, but generally, the DSO remains relatively stable.
The DSO significantly decreases in December 2022, hitting a low of 51.22 days. This decline suggests a more efficient collection process during that period, potentially indicating tighter credit policies or increased effectiveness in managing account receivables.
However, by March 2023, the DSO increases again but remains below the levels seen in 2021. The company maintains a DSO below 70 days through the rest of 2023 and into 2024, indicating overall efficiency in collecting revenue.
Overall, the trend in DSO for CSW Industrials Inc shows variability over the quarters, with periods of improvement and slight deterioration. It is important for the company to continue monitoring DSO to ensure efficient management of accounts receivable and maintain healthy cash flow.
Peer comparison
Mar 31, 2025