Scholastic Corporation (SCHL)
Days of sales outstanding (DSO)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.35 | 5.93 | 5.03 | 3.75 | 4.51 | |
| DSO | days | 57.52 | 61.51 | 72.60 | 97.28 | 80.95 |
May 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.35
= 57.52
Scholastic Corporation's Days Sales Outstanding (DSO) has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect receivables efficiently. In particular, the DSO decreased from 80.95 days in 2020 to 57.52 days in 2024, demonstrating a significant enhancement in the company's collection period.
This trend suggests that Scholastic Corporation has been managing its accounts receivables more effectively, potentially resulting in improved cash flow and liquidity. A decreasing DSO generally indicates that the company is able to convert its sales into cash more quickly, which can positively impact its working capital management and overall financial health.
The decrease in DSO from 2020 to 2024 may be attributed to more efficient credit and collection policies, better customer payment practices, or improved sales terms. It is important to note that a lower DSO is generally favorable as it indicates that the company is able to collect payments from customers in a timely manner, reducing the risk of bad debts and improving the company's financial performance.
Peer comparison
May 31, 2024