Toll Brothers Inc (TOL)
Days of sales outstanding (DSO)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | |
| DSO | days | — | — | — | — | — |
October 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
To analyze Toll Brothers Inc.'s days of sales outstanding (DSO), we can see a declining trend over the last five years. The DSO has reduced from 22.97 days in 2019 to 9.00 days in 2023. This decrease indicates that the company is collecting its accounts receivable more quickly, which may suggest an efficient credit and collection process.
A lower DSO reflects a shorter time period between making a sale and receiving the payment, which can improve the company's cash flow and liquidity. This trend may indicate that Toll Brothers Inc. has become more effective in managing its accounts receivable and ensuring timely collection of sales proceeds.
Overall, the decreasing DSO trend suggests that Toll Brothers Inc. has been improving its working capital management and may be effectively managing its credit and collection policies. This can positively impact the company's financial health and operational efficiency.
Peer comparison
Oct 31, 2023