Toro Co (TTC)
Days of sales outstanding (DSO)
| Oct 31, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Oct 31, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 31, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 31, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 31, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 9.90 | 8.35 | 6.99 | 8.88 | 11.03 | 12.00 | 10.33 | 12.43 | 13.46 | 12.18 | 9.31 | 10.90 | 12.67 | 12.68 | 9.41 | 11.30 | 12.88 | 11.05 | 8.15 | 10.26 | |
| DSO | days | 36.87 | 43.73 | 52.25 | 41.08 | 33.09 | 30.43 | 35.34 | 29.38 | 27.11 | 29.96 | 39.20 | 33.50 | 28.81 | 28.80 | 38.79 | 32.29 | 28.35 | 33.04 | 44.81 | 35.59 |
October 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.90
= 36.87
The Days Sales Outstanding (DSO) ratio for Toro Co has shown fluctuations over the past few years. DSO is a measure of how long it takes for a company to collect its accounts receivable on average.
Analyzing the data provided, we can see that the DSO for Toro Co has ranged from a low of 27.11 days to a high of 52.25 days over the last few years. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally a positive sign as it implies efficient cash flow management. On the other hand, a higher DSO may suggest potential issues in collecting payments promptly, which could lead to cash flow challenges.
It is notable that the DSO has shown some volatility, with fluctuations observed from period to period. This may reflect changes in the company's credit policies, customer payment behaviors, or other external factors affecting collections.
Overall, monitoring the DSO ratio over time can provide insights into the efficiency of Toro Co's accounts receivable management and its ability to convert sales into cash. It is important for the company to strive for a balance between timely collections and maintaining good customer relationships to ensure healthy cash flow and financial stability.