Toll Brothers Inc (TOL)
Days of sales outstanding (DSO)
| 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 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |
| DSO | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days of Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect its accounts receivable. A lower DSO value generally indicates more efficient accounts receivable management, as it implies that the company is collecting payments from customers more quickly.
Analyzing Toll Brothers Inc.'s DSO over the past eight quarters, we can observe fluctuations in the collection efficiency of the company. In Q1 2024, Toll Brothers had a DSO of 2.63 days, which was significantly lower compared to the preceding quarter Q4 2023, when DSO was 9.00 days. This sharp decrease in DSO indicates that Toll Brothers improved its accounts receivable collection process and was able to collect payments from customers at a much faster rate.
Looking further back, we can see that there have been fluctuations in DSO over the quarters, with periods of relatively low DSO values followed by higher values and vice versa. This variability in DSO suggests that Toll Brothers' accounts receivable management may not be consistently optimal, as the company experiences challenges in collecting payments efficiently across different quarters.
Overall, it is important for Toll Brothers to focus on maintaining a consistently low DSO to ensure timely collection of accounts receivable and improve cash flow management. Monitoring and analyzing DSO trends regularly can help the company identify areas for improvement in its accounts receivable processes and implement strategies to enhance collections efficiency.
Peer comparison
Jan 31, 2024