PriceSmart Inc (PSMT)
Days of sales outstanding (DSO)
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 259.34 | 267.97 | 234.40 | 254.93 | 245.32 | 286.19 | 258.56 | 221.01 | 303.64 | 271.42 | 254.57 | 238.75 | 292.89 | 288.10 | 288.49 | 224.07 | 253.11 | 304.97 | 303.40 | 316.35 | |
| DSO | days | 1.41 | 1.36 | 1.56 | 1.43 | 1.49 | 1.28 | 1.41 | 1.65 | 1.20 | 1.34 | 1.43 | 1.53 | 1.25 | 1.27 | 1.27 | 1.63 | 1.44 | 1.20 | 1.20 | 1.15 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 259.34
= 1.41
The Days of Sales Outstanding (DSO) metric for PriceSmart Inc has shown some fluctuations over the past few years, ranging from a low of 1.15 days to a high of 1.65 days. Generally, the company has managed to keep its DSO relatively low, indicating efficient management of accounts receivables.
The DSO figure represents the average number of days it takes for PriceSmart Inc to collect revenue after making a sale. A lower DSO is typically favorable as it signifies a quicker turnaround in converting sales into cash, indicating strong liquidity and efficient credit management practices.
The recent DSO figures of around 1.4 days suggest that PriceSmart Inc's customers are paying their invoices promptly, which minimizes the risk of bad debts and helps maintain a healthy cash flow position. However, it is important for the company to monitor fluctuations in DSO closely to ensure timely collections and efficient working capital management.
Peer comparison
Aug 31, 2024