Leslies Inc (LESL)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Receivables turnover | 26.50 | 39.26 | 30.73 | 29.88 | |
| DSO | days | 13.77 | 9.30 | 11.88 | 12.21 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.50
= 13.77
The Days Sales Outstanding (DSO) ratio for Leslies Inc has shown some fluctuations over the past four years. In September 2024, the DSO was 13.77 days, which increased from 9.30 days in September 2023 but was lower than the DSO of 11.88 days in September 2022 and 12.21 days in September 2021.
A higher DSO indicates that it takes Leslies Inc longer to collect payments from its customers, which could potentially impact its cash flow and liquidity. The increasing trend in DSO from 2021 to 2024 may suggest a slowdown in the company's collections process or issues with customer payments.
It is essential for Leslies Inc to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables. Analyzing the reasons behind the fluctuation in DSO and implementing strategies to shorten the collection period can help improve the company's financial health and operational efficiency.
Peer comparison
Sep 30, 2024