Vista Outdoor Inc (VSTO)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.72 | 8.90 | 8.46 | 7.32 | 5.47 | |
| DSO | days | 47.25 | 41.01 | 43.13 | 49.85 | 66.72 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.72
= 47.25
The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as a positive sign of efficiency.
Looking at the historical trend for Vista Outdoor Inc's DSO over the past five years, we observe fluctuations in the metric. In the most recent fiscal year, ending March 31, 2024, the company's DSO stood at 47.25 days, showing an increase compared to the previous year's DSO of 41.01 days.
The upward trend in DSO from 2020 to 2021 followed by a decrease in 2022 suggests that the company had challenges in collecting payments in the fiscal year ending March 31, 2021, which were subsequently addressed leading to improved collections in the following year. However, the increase in DSO in 2024 indicates a potential reversal in the efficiency of accounts receivable collection.
Overall, the company's DSO trend indicates a need for closer monitoring of accounts receivable management to ensure timely collection of revenues and maintain healthy cash flows. A higher DSO could signify potential liquidity issues if not managed effectively. Further analysis of the company's receivables collection policies and the economic environment in which it operates may provide additional insights into the reasons behind the fluctuations in DSO.
Peer comparison
Mar 31, 2024