Advanced Drainage Systems Inc (WMS)
Days of sales outstanding (DSO)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.90 | 10.01 | 8.10 | 8.37 | 8.16 | |
| DSO | days | 40.99 | 36.48 | 45.06 | 43.61 | 44.71 |
March 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.90
= 40.99
The Days Sales Outstanding (DSO) ratio for Advanced Drainage Systems Inc has varied over the last five years. In the most recent fiscal year ending March 31, 2024, the DSO stood at 40.99 days, showing an increase from the previous year's 36.48 days. This increase indicates that the company is taking slightly longer to collect its accounts receivable compared to the prior year.
Looking further back, the DSO was 45.06 days in March 31, 2022, 43.61 days in March 31, 2021, and 44.71 days in March 31, 2020, indicating fluctuations in the collection period over the years.
Overall, Advanced Drainage Systems Inc should aim to closely monitor and manage its DSO to ensure efficient accounts receivable management and timely collection of sales revenue to improve its cash flow position.