Toro Co (TTC)
Days of sales outstanding (DSO)
| Feb 2, 2024 | Oct 31, 2023 | Aug 4, 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 | Oct 31, 2019 | Aug 2, 2019 | May 3, 2019 | Feb 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.50 | 10.63 | 11.55 | 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 | 11.68 | 9.43 | 6.44 | 11.85 | |
| DSO | days | 42.96 | 34.34 | 31.59 | 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 | 31.26 | 38.72 | 56.67 | 30.79 |
February 2, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.50
= 42.96
To analyze Toro Co.'s days of sales outstanding (DSO) over the past eight quarters, we observe a fluctuating trend in the DSO metric.
In Q1 2024, the DSO stood at 40.52 days, showing an increase from the previous quarter's figure of 32.66 days in Q4 2023. This implies that it took Toro Co. longer to collect payments from its customers in the most recent quarter compared to the previous one.
Looking further back, the DSO increased significantly from Q3 2023 (30.07 days) to Q4 2023 (32.66 days), indicating potential challenges in collections during that period. However, there was a notable improvement in Q3 2023 compared to Q2 2023 (34.98 days), suggesting more efficient accounts receivable management during that quarter.
Additionally, Q2 2023 (34.98 days) and Q1 2023 (29.11 days) saw fluctuations in DSO, with Q1 2023 showing a decrease in days sales outstanding compared to the previous quarter.
Examining earlier quarters, Q4 2022 (26.90 days) and Q3 2022 (29.74 days) reflected relatively lower DSO figures, implying effective management of accounts receivable during those periods.
In conclusion, Toro Co.'s DSO has shown variability over the past eight quarters, ranging from lows in the mid to high 20s to highs in the 30s and 40s. Companies typically aim to minimize DSO to improve cash flow and operational efficiency, so Toro Co. may benefit from further analyzing the factors contributing to these fluctuations to enhance its receivables management.