RPM International Inc (RPM)
Days of sales outstanding (DSO)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.89 | 6.60 | 5.69 | 5.43 | 4.97 | 6.55 | 5.71 | 5.17 | 4.67 | 6.00 | 5.33 | 4.96 | 4.68 | 5.96 | 5.37 | 5.25 | 4.77 | 5.83 | 5.29 | 4.87 | |
| DSO | days | 74.71 | 55.26 | 64.13 | 67.28 | 73.51 | 55.76 | 63.98 | 70.60 | 78.08 | 60.79 | 68.49 | 73.52 | 77.96 | 61.25 | 67.95 | 69.55 | 76.56 | 62.63 | 68.97 | 75.00 |
May 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.89
= 74.71
The analysis of RPM International Inc.'s days of sales outstanding (DSO) over the specified periods reveals notable fluctuations, indicating certain trends and dynamics in its accounts receivable management. As of August 31, 2020, the DSO stood at 75.00 days, suggesting the average number of days it took the company to collect receivables was relatively high at that time. Over the subsequent quarters, there was a general downward trend, reaching a low of 55.26 days on February 29, 2024, which signifies improved collection efficiency and shorter credit cycles during that period.
This decline from the initial 75.00 days to below 60 days by early 2024 reflects potentially more stringent credit policies, better receivable management, or advantageous changes in customer payment behaviors. After reaching this low point in early 2024, the DSO increased again to 74.71 days by May 31, 2025, nearing previous higher levels, which may indicate a strategic easing of credit terms, customer weakening, or seasonal factors influencing collection periods.
Throughout the analyzed timeframe, RPM's DSO exhibits relative stability with intermittent fluctuations, oscillating roughly between 55 and 78 days. The reduction in DSO over time emphasizes an overall trend toward improved receivables turnover, which can positively impact cash flow. Conversely, the periods of increase suggest variations that could be linked to changing credit policies, economic conditions, or industry-specific factors.
In summary, RPM International Inc. has demonstrated considerable variability in days of sales outstanding, with a notable overall decrease from 75 days in 2020 to approximately 55 days in early 2024, followed by a modest increase thereafter. This pattern indicates periods of enhanced efficiency in collection processes interspersed with phases of relaxed receivable management or external influences affecting customer payments.
Peer comparison
May 31, 2025