MSC Industrial Direct Company Inc (MSM)
Days of sales outstanding (DSO)
| Aug 31, 2024 | Sep 2, 2023 | Sep 3, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.27 | 9.15 | 5.36 | 5.76 | 6.46 | |
| DSO | days | 39.38 | 39.87 | 68.14 | 63.36 | 56.53 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.27
= 39.38
The days of sales outstanding (DSO) for MSC Industrial Direct Company Inc have shown a downward trend over the past five years, indicating an improvement in the company's accounts receivable management. In particular, the DSO has decreased from 56.53 days in 2020 to 39.38 days in 2024, reflecting a more efficient collection of sales revenues from customers. This reduction in DSO suggests that the company has been able to accelerate its cash inflows by collecting receivables more promptly, which can help improve liquidity and working capital management. Overall, the declining trend in DSO indicates a positive development in the company's credit and collection policies, leading to a more streamlined and effective receivables management process.
Peer comparison
Aug 31, 2024