Advanced Drainage Systems Inc (WMS)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.25 | 8.88 | 10.01 | 8.10 | 8.39 | |
| DSO | days | 39.46 | 41.09 | 36.48 | 45.04 | 43.48 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.25
= 39.46
Analyzing the Days of Sales Outstanding (DSO) for Advanced Drainage Systems Inc over the years reveals a fluctuating trend. In March 2021, the DSO stood at 43.48 days and increased slightly to 45.04 days by March 2022. However, there was a notable improvement in efficiency in collecting receivables as the DSO decreased to 36.48 days by March 2023. Subsequently, the DSO increased to 41.09 days by March 2024 before declining again to 39.46 days by March 2025. This improvement in collection efficiency in 2023 suggests a more streamlined accounts receivable process, positively impacting the company's cash flow. However, the slight increase in DSO in the following years may warrant further examination to ensure timely collection of outstanding receivables.