Haynes International Inc (HAYN)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.35 | 5.14 | 5.67 | 6.91 | 6.21 | |
| DSO | days | 68.20 | 71.02 | 64.33 | 52.86 | 58.82 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.35
= 68.20
To analyze Haynes International Inc.'s days of sales outstanding (DSO), we can observe a trend over the past five years. DSO represents the average number of days it takes for a company to collect revenue after a sale is made. A higher DSO could indicate a potential issue with collecting payments from customers in a timely manner.
Looking at the data, we observe an increasing trend in DSO from 2019 to 2022, with a peak of 70.63 days in 2022. This suggests that Haynes International Inc. took longer to collect revenue from sales during this period, which could indicate challenges in its accounts receivable management.
However, in 2023, the DSO decreased to 67.23 days, which may indicate an improvement in the company's collection efforts. Despite this improvement, it is important to monitor whether this trend will be sustained in the future.
Overall, the increasing trend in DSO from 2019 to 2022 and the subsequent decrease in 2023 should prompt further analysis of Haynes International Inc.'s accounts receivable management practices and their impact on cash flow and working capital.
Peer comparison
Sep 30, 2023