RPM International Inc (RPM)
Days of sales outstanding (DSO)
| 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 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.08 | 6.73 | 5.86 | 5.09 | 4.76 | 5.93 | 5.25 | 4.90 | 4.62 | 5.88 | 5.30 | 5.17 | 4.70 | 5.76 | 5.23 | 4.80 | 4.77 | 5.87 | 5.28 | 4.95 | |
| DSO | days | 71.85 | 54.27 | 62.30 | 71.66 | 76.69 | 61.55 | 69.51 | 74.56 | 79.04 | 62.10 | 68.90 | 70.56 | 77.68 | 63.32 | 69.78 | 75.97 | 76.52 | 62.14 | 69.10 | 73.66 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.08
= 71.85
Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO value indicates that the company is collecting payments more quickly and efficiently, while a higher DSO value suggests that the company is taking longer to convert its sales into cash.
Analyzing the DSO trend for RPM International Inc from November 2019 to May 2024, we observe fluctuations in the DSO values over time. The DSO values have ranged from a low of 54.27 days in February 2024 to a high of 79.04 days in May 2022.
The DSO trend indicates that RPM International Inc has experienced variability in its collection efficiency during the period under review. The company showed improvement in collection efficiency in February 2024 with a DSO of 54.27 days, indicating a faster conversion of sales into cash. However, there was an increase in DSO to 71.85 days in May 2024, which suggests a slowdown in the collection of receivables.
Overall, the trend in DSO for RPM International Inc reflects the company's ability to manage its accounts receivable effectively. Investors and stakeholders should closely monitor changes in the DSO metric to assess the company's liquidity position and the effectiveness of its credit policies and collection efforts.
Peer comparison
May 31, 2024