Quanex Building Products (NX)
Days of sales outstanding (DSO)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 13.85 | 5.79 | 11.81 | 12.36 | 14.34 | 6.37 | 11.01 | 9.83 | 11.16 | 4.96 | 10.54 | 10.03 | 10.72 | 4.82 | 9.90 | 12.90 | 13.96 | 5.39 | 10.91 | 11.15 | |
| DSO | days | 26.35 | 63.00 | 30.90 | 29.52 | 25.45 | 57.33 | 33.14 | 37.14 | 32.70 | 73.55 | 34.63 | 36.39 | 34.04 | 75.68 | 36.86 | 28.29 | 26.16 | 67.66 | 33.47 | 32.75 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.85
= 26.35
Days Sales Outstanding (DSO) is a key financial metric that measures how long it takes for a company to collect revenue from its sales. A lower DSO indicates a faster collection of accounts receivable, which is generally favorable as it implies better liquidity and cash flow management.
Analyzing Quanex Building Products' DSO trend from January 2020 to January 2024, we observe fluctuations in the metric over the period. In January 2020, the DSO was 26.16 days, indicating a relatively efficient collection process. Subsequently, there was an increase in DSO to 67.66 days by October 2019, suggesting a longer time taken to collect revenues.
From January 2020 to July 2021, there was a decreasing trend in DSO, reaching a low of 25.45 days in January 2023. This improvement signifies a more prompt collection of accounts receivable during this period. However, there was a notable increase in DSO to 73.55 days by October 2021, indicating a reversal or potential issues in revenue collection efficiency.
In the most recent data point of January 2024, the DSO stands at 26.35 days, showing a significant improvement from the previous period. It signals a positive development in the collection process, potentially reflecting better credit management or improved customer payment behavior.
Overall, Quanex Building Products' DSO trend indicates fluctuations in the efficiency of their accounts receivable collection process over the analyzed period. Further investigation into the underlying reasons for these fluctuations would be necessary to assess the effectiveness of the company's credit and collections policies.
Peer comparison
Jan 31, 2024