Lennar Corporation (LEN)
Days of sales outstanding (DSO)
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
November 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze Lennar Corp.'s days of sales outstanding (DSO) over the past five years, we can observe a steady increase in the DSO ratio. Specifically, in November 2023, the DSO stands at 18.09 days, compared to 17.50 days in November 2022 and 17.45 days in November 2021. This indicates a prolonged collection period for Lennar Corp's accounts receivable.
This upward trend suggests that the company is taking a longer time to collect payments from its customers, which could potentially impact its cash flow and liquidity. It is important to note that a higher DSO may indicate potential issues with credit policies, collection efforts, or customer creditworthiness.
Therefore, management may need to carefully assess and potentially revise their credit and collection policies to ensure prompt payment collection and mitigate potential liquidity challenges. Additionally, a review of customer credit risk assessment and the effectiveness of the company's collection processes may be warranted to address the increasing DSO trend.
Peer comparison
Nov 30, 2023