PriceSmart Inc (PSMT)
Days of sales outstanding (DSO)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 244.90 | 303.64 | 292.89 | 253.11 | 326.57 | |
| DSO | days | 1.49 | 1.20 | 1.25 | 1.44 | 1.12 |
August 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 244.90
= 1.49
To analyze Pricesmart Inc.'s days of sales outstanding (DSO) over the past five years, we can observe a consistent trend of relatively low DSO figures, which indicates the company's efficient management of accounts receivable.
The DSO has exhibited a slight fluctuation, ranging from 1.12 days in 2019 to 1.48 days in 2023. However, throughout this period, the DSO has generally been maintained at a low level, reflecting strong collection procedures and efficient credit management.
Overall, Pricesmart Inc.'s ability to promptly convert its accounts receivable into cash highlights its effective credit policies and diligent collections practices. This efficient management of DSO is indicative of the company's strong financial performance and operational efficiency.
Peer comparison
Aug 31, 2023