Ethan Allen Interiors Inc (ETD)
Days of sales outstanding (DSO)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 95.50 | 68.34 | 48.04 | 75.87 | 72.89 | |
| DSO | days | 3.82 | 5.34 | 7.60 | 4.81 | 5.01 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 95.50
= 3.82
The days of sales outstanding (DSO) is a key metric used to evaluate how efficiently a company manages its accounts receivable. It calculates the average number of days it takes for a company to collect payment from its customers after making a sale.
Analyzing the DSO trend of Ethan Allen Interiors Inc over the past five years, we observe a fluctuating pattern. The DSO decreased from 7.60 days in 2022 to 3.82 days in 2024, indicating an improvement in the company's ability to collect payments more quickly from customers.
A lower DSO generally indicates that the company has efficient credit and collection policies in place, resulting in faster cash inflows. This could also suggest effective management of accounts receivable and a healthier working capital position.
However, it is essential to consider other factors such as industry norms, economic conditions, and company-specific circumstances when interpreting DSO figures. Further analysis of the company's financial statements and operational efficiency would provide a more comprehensive understanding of Ethan Allen Interiors Inc's performance in managing its accounts receivable.
Peer comparison
Jun 30, 2024