Quanex Building Products (NX)
Days of sales outstanding (DSO)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.28 | 5.79 | 6.37 | 4.96 | 4.82 | |
| DSO | days | 111.30 | 63.01 | 57.33 | 73.55 | 75.68 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.28
= 111.30
The days of sales outstanding (DSO) is a measure used to evaluate how efficiently a company is able to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally preferred.
Looking at the DSO trend for Quanex Building Products over the past five years, we can observe fluctuations in the collection efficiency. In 2024, the DSO increased significantly to 111.30 days from the previous year's level of 63.01 days. This suggests that the company took longer to collect payments from its customers in 2024. Comparing with 2023 and 2022, where the DSO was 63.01 days and 57.33 days respectively, the increase in 2024 is notable.
In 2021 and 2020, the DSO was 73.55 days and 75.68 days respectively, reflecting a longer collection period compared to 2022 and 2023. It is important to note that a higher DSO could indicate potential issues with the company's credit policies, collection processes, or payment terms with customers.
Overall, the trend in Quanex Building Products DSO over the past five years indicates some variability in collection efficiency. Further analysis of the company's accounts receivable management practices and customer relationships may provide insights into the factors driving these fluctuations in DSO.
Peer comparison
Oct 31, 2024