John Wiley & Sons (WLY)
Days of sales outstanding (DSO)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.34 | 6.40 | 6.21 | 6.20 | 5.85 | |
| DSO | days | 43.74 | 57.06 | 58.82 | 58.87 | 62.39 |
April 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.34
= 43.74
Days Sales Outstanding (DSO) is a key metric used to assess how efficiently a company is managing its accounts receivable. A lower DSO indicates that a company is collecting payments from its customers more quickly, which can be a positive sign of strong cash flow or effective credit management.
In the case of John Wiley & Sons, we observe a decreasing trend in DSO over the past five years. The DSO has improved from 62.39 days in 2020 to 43.74 days in 2024. This improvement suggests that John Wiley & Sons has been able to speed up its collection of accounts receivable over the years, indicating efficient management of credit terms and collections.
A decreasing DSO can indicate that the company has tightened its credit policies, improved its collection procedures, or has a customer base that pays promptly. It may also suggest that the company's sales are turning into cash more quickly, which can enhance liquidity and working capital management.
Overall, the declining trend in DSO for John Wiley & Sons is a positive indicator of efficient accounts receivable management and effective credit control practices, potentially contributing to improved cash flow and financial performance over the years.
Peer comparison
Apr 30, 2024