Worthington Industries Inc (WOR)

The Days of Sales Outstanding (DSO) for Worthington Industries Inc. demonstrates significant variability over the analyzed period. As of May 31, 2021, the DSO was approximately 73.88 days, indicating a substantial period to collect receivables, which may suggest longer credit terms extended to customers or potential inefficiencies in receivables management at that time. By May 31, 2022, the DSO decreased markedly to around 61.14 days, reflecting an improvement in receivables collection efficiency.

A further reduction is observed by May 31, 2023, when the DSO dropped sharply to approximately 16.67 days, indicating a significant acceleration in receivables collections, which could be attributed to improved credit policies, collection efforts, or changes in customer payment behaviors. However, this notably low DSO in 2023 may also be scrutinized for potential shifts in revenue recognition or billing practices.

Subsequently, the DSO increased again to about 63.62 days by May 31, 2024, nearly returning to the 2021 levels, which may suggest a relaxation of credit terms, challenges in payments, or strategic shifts in credit policy. The figure continued to rise slightly, reaching approximately 72.30 days on May 31, 2025, indicating a return to longer collection periods reminiscent of the earliest observed levels.

Overall, the DSO trend displays considerable fluctuation, with a notable peak in 2021, a sharp decline in 2023, followed by a subsequent increase. These variations may reflect changes in credit management strategies, customer base, industry conditions, or billing practices over the period. The marked reduction in 2023 warrants further investigation to determine whether it aligns with operational improvements or other contextual factors influencing receivables.

Peer comparison

May 31, 2025