Lindsay Corporation (LNN)
Days of sales outstanding (DSO)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.21 | 4.66 | 5.58 | 6.06 | 5.61 | |
| DSO | days | 70.11 | 78.39 | 65.45 | 60.19 | 65.05 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.21
= 70.11
To analyze Lindsay Corporation's Days Sales Outstanding (DSO) over the past five years, a trend can be observed. The DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
From 2020 to 2021, there was a slight increase in DSO from 65.05 days to 60.19 days, indicating an improvement in the company's receivables management efficiency. However, this positive trend reversed in the following years, with DSO increasing to 65.45 days in 2022 and further to 78.39 days in 2023. This suggests a decline in the company's ability to collect outstanding payments promptly.
In 2024, there was a decrease in DSO to 70.11 days, but it remains higher compared to the 2020 and 2021 levels. This fluctuation in DSO over the years may raise concerns about the company's credit and collection policies or the creditworthiness of its customers.
Overall, the trend in Lindsay Corporation's DSO indicates a need for further examination and potential improvements in the company's accounts receivable management to ensure timely collection of sales revenue and maintain healthy cash flow levels.
Peer comparison
Aug 31, 2024