Quanex Building Products (NX)
Days of sales outstanding (DSO)
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.27 | 12.40 | 12.67 | 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 | |
| DSO | days | 111.47 | 29.43 | 28.82 | 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 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.27
= 111.47
Quanex Building Products' Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for the company to collect payment after making a sale.
From the data provided, we observe fluctuations in the DSO over time. In the most recent period ending on October 31, 2024, the DSO was significantly higher at 111.47 days compared to the previous periods. This indicates that the company may be facing challenges in collecting payments from customers promptly, potentially leading to cash flow issues.
On the other hand, the DSO was relatively low in the periods ending July 31, 2024, and April 30, 2024, at 29.43 days and 28.82 days, respectively. This suggests that the company was efficient in collecting receivables during those periods, which is a positive sign for liquidity and working capital management.
Overall, monitoring DSO trends is crucial for assessing the effectiveness of Quanex Building Products' credit and collection policies. A rising DSO may signal inefficiencies in accounts receivable management, while a declining DSO can indicate improvements in cash flow and operational efficiency.
Peer comparison
Oct 31, 2024