Donaldson Company Inc (DCI)
Days of sales outstanding (DSO)
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.70 | 5.53 | 5.80 | 5.89 | 5.72 | 5.49 | 5.95 | 5.81 | 5.36 | 5.44 | 5.59 | 5.44 | 5.13 | 4.97 | 5.18 | 5.45 | 5.64 | 5.81 | 5.81 | 5.61 | |
| DSO | days | 64.09 | 66.00 | 62.89 | 61.99 | 63.80 | 66.43 | 61.34 | 62.84 | 68.06 | 67.13 | 65.32 | 67.09 | 71.09 | 73.50 | 70.51 | 67.01 | 64.71 | 62.77 | 62.80 | 65.11 |
July 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.70
= 64.09
The Days Sales Outstanding (DSO) ratio for Donaldson Company Inc has shown slight fluctuations over the past few quarters. DSO measures the average number of days a company takes to collect revenue after a sale.
Based on the data provided, DSO has ranged from a low of 61.34 days to a high of 73.50 days over the last five years. In the most recent quarter ending July 31, 2024, the DSO was 64.09 days, indicating that on average, it takes the company approximately 64 days to collect its accounts receivable.
A higher DSO value suggests that the company is taking longer to collect payments from its customers, which could potentially strain its cash flow. On the other hand, a lower DSO value indicates that the company is efficiently managing its accounts receivable and collecting payments in a timely manner.
Overall, while Donaldson Company Inc has experienced some variability in its DSO ratio, it is essential for the company to monitor and manage this metric effectively to ensure efficient cash flow management and business performance.