PriceSmart Inc (PSMT)
Days of sales outstanding (DSO)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 259.67 | 244.90 | 303.64 | 292.89 | 253.11 | |
| DSO | days | 1.41 | 1.49 | 1.20 | 1.25 | 1.44 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 259.67
= 1.41
The days of sales outstanding (DSO) for PriceSmart Inc have shown fluctuations over the past five years. In 2024, the DSO decreased to 1.41 days from 1.49 days in 2023, indicating that the company is collecting its accounts receivable more efficiently. This reduction in DSO could suggest improved credit management or faster payment collection from customers.
Comparing the DSO to previous years, we observe that in 2022, the DSO was lower at 1.20 days, indicating that the company was collecting its receivables even faster than in 2024. However, the DSO increased slightly in 2023 but then decreased again in 2024.
Overall, PriceSmart Inc's DSO has remained relatively low and stable over the years, which suggests that the company has been effective in managing its accounts receivable and converting sales into cash quickly. This efficiency in receivables management could indicate strong customer relationships, effective credit policies, or efficient collection processes within the company.
Peer comparison
Aug 31, 2024