Advanced Drainage Systems Inc (WMS)
Days of sales outstanding (DSO)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 9.25 | 11.87 | 8.15 | 7.89 | 8.88 | 11.79 | 8.03 | 8.57 | 10.01 | 12.92 | 8.23 | 7.05 | 8.10 | 8.36 | 6.38 | 7.06 | 8.39 | 10.12 | 6.98 | 7.31 | |
| DSO | days | 39.46 | 30.76 | 44.79 | 46.29 | 41.09 | 30.97 | 45.46 | 42.57 | 36.48 | 28.26 | 44.36 | 51.78 | 45.04 | 43.65 | 57.22 | 51.72 | 43.48 | 36.07 | 52.26 | 49.90 |
March 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.25
= 39.46
The days of sales outstanding (DSO) for Advanced Drainage Systems Inc have shown fluctuation over the periods analyzed. The DSO measures how long it takes for a company to collect payments from its customers after making a sale.
From June 30, 2020, to December 31, 2022, the DSO ranged between 28.26 days to 57.22 days, indicating variability in the company's collection efficiency. There was a notable decrease in DSO from December 31, 2022, to December 31, 2023, suggesting an improvement in collecting payments from customers within a shorter period.
However, from March 31, 2024, to September 30, 2024, there was a slight increase in DSO, reflecting a potential delay in collecting payments compared to the prior period. The DSO reduced again by December 31, 2024, showing some recovery in the collection cycle efficiency.
Overall, the trend in DSO for Advanced Drainage Systems Inc indicates periods of both improvement and challenges in managing accounts receivable and collecting payments from customers promptly. Continued monitoring and analysis of DSO can help assess the company's effectiveness in managing its cash flow and customer credit policies.