Worthington Industries Inc (WOR)
Days of sales outstanding (DSO)
| Aug 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 11.39 | 13.28 | 4.60 | 4.37 | 5.97 | 6.08 | 7.67 | 6.75 | 5.97 | 5.47 | 5.53 | 4.98 | 4.94 | 5.30 | 6.31 | 6.83 | 8.75 | 7.00 | 7.14 | 7.55 | |
| DSO | days | 32.04 | 27.49 | 79.32 | 83.53 | 61.17 | 59.99 | 47.57 | 54.07 | 61.14 | 66.74 | 66.03 | 73.25 | 73.88 | 68.86 | 57.83 | 53.43 | 41.69 | 52.16 | 51.13 | 48.36 |
August 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.39
= 32.04
Days Sales Outstanding (DSO) is a crucial financial ratio that measures the average number of days a company takes to collect revenue after a sale has been made. Lower DSO values imply faster collections and better liquidity management.
Analyzing Worthington Industries Inc's DSO over the provided periods reveals fluctuations in the company's ability to collect accounts receivable efficiently. In the most recent period (August 31, 2024), the company had a DSO of 32.04 days, indicating a relatively efficient collection process. This is an improvement compared to the February 29, 2024, DSO of 27.49 days.
Looking back further, the DSO spiked significantly in November 30, 2023, reaching 79.32 days, which suggests a challenge in collecting outstanding payments during that period. This was followed by a slight improvement in DSO to 83.53 days on August 31, 2023, indicating continued challenges in accounts receivable management.
The historical trend showcases fluctuations in DSO, with peaks and troughs recorded over various periods. It is essential for Worthington Industries to focus on optimizing their collections process to maintain a healthy balance between timely collections and maintaining good customer relationships.
Overall, Worrington Industries Inc's DSO trend indicates the need for ongoing monitoring and potentially implementing strategies to ensure efficient accounts receivable management and improved cash flow.
Peer comparison
Aug 31, 2024