Urban Outfitters Inc (URBN)

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		76.73	65.18	62.43	45.94	68.08	58.24	48.26	48.15	71.34	37.69	43.88	44.40	38.18	40.16	58.23	65.80	44.96	39.41	41.27	44.75
DSO	days	4.76	5.60	5.85	7.95	5.36	6.27	7.56	7.58	5.12	9.69	8.32	8.22	9.56	9.09	6.27	5.55	8.12	9.26	8.85	8.16

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 76.73
= 4.76

To analyze Urban Outfitters Inc's days of sales outstanding (DSO) over the past few quarters, we can see a fluctuating trend. DSO represents the average number of days it takes for the company to collect its accounts receivable.

From Jan 31, 2020, to Jan 31, 2022, the DSO remained relatively stable, with slight fluctuations between 5 and 6 days. This indicates efficient management of accounts receivable during this period.

However, from Jan 31, 2022, to Oct 31, 2023, there was an increase in DSO, reaching a peak of 9.69 days in Oct 31, 2022. This suggests that Urban Outfitters Inc may have been facing challenges in collecting receivables promptly during these quarters.

It is important for the company to closely monitor and manage its DSO to ensure efficient working capital management. High DSO can indicate potential liquidity issues or inefficiencies in receivables management, impacting the company's cash flow and overall financial health.

Going forward, Urban Outfitters Inc should implement strategies to shorten its DSO, such as improving credit policies, enhancing collection procedures, and strengthening customer relationships to ensure timely payments and improve overall financial performance.