Thor Industries Inc (THO)
Days of sales outstanding (DSO)
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 20.01 | 15.82 | 19.25 | 18.99 | 20.28 | 16.56 | 24.20 | 20.51 | 19.12 | 13.71 | 13.69 | 12.45 | 15.34 | 14.22 | 12.66 | 12.91 | 13.70 | 32.36 | 15.22 | 14.69 | |
| DSO | days | 18.24 | 23.07 | 18.96 | 19.22 | 18.00 | 22.04 | 15.08 | 17.79 | 19.09 | 26.62 | 26.66 | 29.32 | 23.79 | 25.67 | 28.82 | 28.27 | 26.64 | 11.28 | 23.98 | 24.84 |
July 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 20.01
= 18.24
Days of Sales Outstanding (DSO) is a key ratio used to assess how efficiently a company is collecting its accounts receivable. A lower DSO indicates faster collections and better liquidity, while a higher DSO suggests slower collections and potential liquidity issues.
Analyzing Thor Industries Inc's DSO over the past few quarters reveals some fluctuations. The DSO has ranged from a low of 11.28 days to a high of 29.32 days. Several spikes in DSO, such as in Jan 2022 and Oct 2021, indicate potential issues with accounts receivable management and collection efficiency.
The trend in DSO over time is mixed, with some periods showing improvements in collection efficiency, while others showing deterioration. Notably, there was a significant decrease in DSO from Jan 2023 to Apr 2023, indicating improved collections during that period. However, the subsequent increase in DSO from Apr 2023 to Jul 2023 suggests a reversal of that improvement.
Overall, it is important for Thor Industries Inc to closely monitor and manage its DSO to ensure efficient collections and maintain healthy liquidity. Fluctuations in DSO can impact cash flow and working capital management, highlighting the need for proactive measures to streamline accounts receivable processes.
Peer comparison
Jul 31, 2024