Universal Corporation (UVV)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.25 | 12.57 | 10.67 | 10.67 | 10.68 | |
| DSO | days | 35.63 | 29.03 | 34.22 | 34.20 | 34.17 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.25
= 35.63
Days Sales Outstanding (DSO) is a measure of how quickly a company collects its accounts receivable. It indicates the average number of days it takes for a company to collect payment after making a sale.
Analyzing the trend in Universal Corporation's DSO over the past five years, we observe fluctuations in the collection period. In the most recent fiscal year ending March 31, 2024, the DSO increased to 35.63 days compared to the previous year's 29.03 days. This indicates that Universal Corporation took longer to collect payments from its customers in 2024, potentially signaling challenges in accounts receivable management.
Comparing the DSO to the prior years, we see that in 2022, 2021, and 2020, the DSO was relatively stable at around 34 days, with minor variations. The slight increase in DSO in 2024 could be indicative of changes in customer payment behavior, credit terms, or collection policies.
It is essential for Universal Corporation to closely monitor and manage its DSO to ensure efficient cash flow management and timely collection of receivables. A rising DSO may suggest potential liquidity or credit risk issues that the company should address to maintain financial health and stability.
Peer comparison
Mar 31, 2024