H B Fuller Company (FUL)
Days of sales outstanding (DSO)
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.39 | 6.07 | 6.17 | 5.33 | 5.42 | |
| DSO | days | 57.10 | 60.08 | 59.13 | 68.44 | 67.36 |
November 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.39
= 57.10
The Days Sales Outstanding (DSO) for H B Fuller Company has shown a generally stable trend over the past five years. Starting from 67.36 days in November 28, 2020, the DSO increased slightly to 68.44 days by November 27, 2021. However, in the following years, there was a positive improvement in efficiency as the DSO decreased to 59.13 days by December 3, 2022 and further to 60.08 days by December 2, 2023. By the end of November 30, 2024, the DSO reached its lowest point at 57.10 days, reflecting a decrease in the average number of days it takes for the company to collect its accounts receivable.
This improvement in DSO indicates enhanced efficiency in managing accounts receivable, potentially resulting from more effective credit policies, quicker invoice processing, or proactive collection efforts. A decreasing trend in DSO is generally considered positive, as it signifies that the company is collecting payments from customers more promptly. However, it is crucial for H B Fuller Company to maintain a balance between efficient collections and maintaining strong customer relationships to ensure continued revenue growth.
Peer comparison
Nov 30, 2024