WD-40 Company (WDFC)
Days of sales outstanding (DSO)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.02 | 5.43 | 5.75 | 5.45 | 5.06 | |
| DSO | days | 72.75 | 67.23 | 63.43 | 66.97 | 72.08 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.02
= 72.75
The Days Sales Outstanding (DSO) ratio for WD-40 Company has shown fluctuating trends over the past five years. In particular, it increased from 66.97 days in 2021 to 72.75 days in 2024, which indicates an elongation in the average collection period for accounts receivable. This rise in DSO could be an indication of potential issues with credit policies, collection efficiency, or an increase in credit sales.
Although the DSO was higher in 2024 compared to 2021, it is worth noting that the ratio in 2024 is still lower than the DSO reported in 2020. This suggests that WD-40 Company may have implemented some measures to expedite the collection of accounts receivable in the most recent year, relative to the performance in 2020.
Overall, a further analysis of the company's receivables management practices and a comparison with industry benchmarks would provide more insights into the effectiveness of WD-40 Company in managing its accounts receivable and optimizing cash flows.
Peer comparison
Aug 31, 2024