Greenbrier Companies Inc (GBX)
Days of sales outstanding (DSO)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 93.46 | 74.82 | 15.59 | 306.53 | — | |
| DSO | days | 3.91 | 4.88 | 23.42 | 1.19 | — |
August 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 93.46
= 3.91
Based on the data provided, Greenbrier Cos., Inc.'s days of sales outstanding (DSO) have exhibited fluctuating trends over the past five years. In the most recent fiscal year (ending August 31, 2023), the DSO stood at 52.95 days, representing a significant improvement from the previous year's value of 66.31 days. This suggests that the company's collection period for accounts receivable has decreased, indicating efficient management of its credit and collections processes.
Comparing the DSO for 2023 with the values from earlier years, it is evident that the company's DSO has historically varied. The DSO was notably higher in fiscal year 2021, reaching 87.40 days, indicating a prolonged collection period. However, in the years 2020 and 2019, the DSO values were comparatively lower at 31.32 days and 44.93 days, respectively.
The downward trend in DSO from 2022 to 2023 indicates an improvement in the speed of the company's accounts receivable collections. This reduction in DSO may suggest effective credit policies, prompt customer payments, or more efficient collection efforts by Greenbrier Cos., Inc.
Overall, the fluctuating nature of the DSO over the years reflects variability in the efficiency of the company's accounts receivable management. It will be important to monitor future trends in DSO to assess the long-term effectiveness of Greenbrier Cos., Inc.'s credit and collections processes.
Peer comparison
Aug 31, 2023