WD-40 Company (WDFC)
Days of sales outstanding (DSO)
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.00 | 4.90 | 5.30 | 5.74 | 5.42 | 5.22 | 5.06 | 5.83 | 5.75 | 5.41 | 4.97 | 5.20 | 5.45 | 4.62 | 4.77 | 4.77 | 5.06 | 5.28 | 5.53 | 6.00 | |
| DSO | days | 73.05 | 74.55 | 68.90 | 63.61 | 67.29 | 69.91 | 72.18 | 62.65 | 63.49 | 67.45 | 73.47 | 70.15 | 66.97 | 79.03 | 76.52 | 76.50 | 72.08 | 69.08 | 66.00 | 60.79 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.00
= 73.05
Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company collects its accounts receivable. A lower DSO indicates that the company is collecting payments faster, while a higher DSO suggests that the company is taking longer to collect payments.
Analyzing the DSO trend for WD-40 Company over the past several quarters reveals some fluctuations. The DSO values have ranged from a low of 60.79 days to a high of 79.03 days over the last few years. Generally, a decreasing trend in DSO is seen as positive as it implies faster collection of receivables.
Looking closely at the data, WD-40 Company experienced a gradual increase in DSO in the most recent quarter (73.05 days in August 2024), compared to the previous quarter (74.55 days in May 2024). This suggests that the company took slightly longer to collect payments from its customers during this period.
However, it is essential to consider industry norms and seasonal variations when interpreting DSO. Further investigation into the reasons behind the fluctuations in DSO, such as changes in customer payment terms, credit policies, or the overall economic environment, would provide more insights into the company's receivables management efficiency.
Peer comparison
Aug 31, 2024