Eagle Materials Inc (EXP)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.41 | 9.95 | 9.94 | 11.28 | 5.04 | |
| DSO | days | 35.05 | 36.70 | 36.70 | 32.36 | 72.41 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.41
= 35.05
Eagle Materials Inc's Days of Sales Outstanding (DSO) has shown a fluctuating trend over the past five fiscal years. In the most recent fiscal year ending March 31, 2024, the DSO decreased to 35.05 days from 36.70 days in the previous year. This improvement indicates that the company is collecting its accounts receivable more efficiently.
Comparing the latest DSO to the figures from earlier years, we see a positive trend in managing accounts receivable. Specifically, compared to March 31, 2020, where the DSO was at a significantly higher level of 72.41 days, the current DSO reflects a marked improvement in the company's ability to collect outstanding payments from customers.
It is essential to continue monitoring the DSO metric to ensure that Eagle Materials Inc maintains its efficiency in collecting receivables and managing cash flow effectively. Overall, the decreasing trend in DSO over the years suggests an enhancement in the company's credit control and collection processes.