Lindsay Corporation (LNN)
Days of sales outstanding (DSO)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.20 | 4.61 | 4.66 | 4.52 | 4.47 | 4.97 | 5.58 | 4.72 | 5.06 | 5.59 | 6.06 | 5.04 | 5.35 | 6.32 | 5.61 | 5.28 | 5.54 | 5.57 | 5.88 | 4.92 | |
| DSO | days | 86.99 | 79.20 | 78.39 | 80.72 | 81.62 | 73.45 | 65.45 | 77.31 | 72.10 | 65.35 | 60.19 | 72.48 | 68.29 | 57.71 | 65.05 | 69.17 | 65.84 | 65.57 | 62.10 | 74.17 |
February 29, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.20
= 86.99
The Days Sales Outstanding (DSO) ratio for Lindsay Corporation has fluctuated over the past few periods. DSO is a measure of how long it takes for a company to collect payment after making a sale.
From Nov 30, 2019, to Nov 30, 2020, the DSO increased from 74.17 days to 86.99 days, indicating an increase in the time it took for the company to collect payment from its customers. This trend continued until May 31, 2021, when the DSO reached its highest point at 87.48 days.
However, from May 31, 2021, to Aug 31, 2022, there was a significant improvement in DSO, with a gradual decrease from 72.48 days to 65.45 days. This trend suggested that the company was able to collect payment more efficiently during this period.
Subsequently, there was a slight increase in DSO from the low point of 57.71 days on Nov 30, 2021, to 86.99 days on Feb 29, 2024. This increase might indicate challenges in collecting payments efficiently or changes in the company's credit policies.
Overall, it is essential for Lindsay Corporation to monitor its DSO closely to ensure efficient cash flow management and timely collection of accounts receivable to support its financial health and operations.
Peer comparison
Feb 29, 2024