Worthington Industries Inc (WOR)
Days of sales outstanding (DSO)
| 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 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 17.25 | 5.96 | 5.63 | 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 | 7.33 | |
| DSO | days | 21.16 | 61.19 | 64.86 | 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 | 49.79 |
February 29, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 17.25
= 21.16
Days of Sales Outstanding (DSO) is a key financial ratio that measures how long it takes a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payment from its customers more quickly, while a higher DSO may suggest potential issues with collections or credit terms.
Analyzing Worthington Industries Inc's DSO over the past two years reveals a fluctuating trend in the collection of accounts receivable. The DSO has ranged from a low of 41.69 days to a high of 73.88 days during this period. The average DSO for the period is approximately 57 days.
The company's DSO has shown some volatility, with occasional spikes above 60 days. This could indicate potential challenges in collecting payments promptly, which may have implications for the company's cash flow and working capital management. It is important for the company to monitor and address any concerning trends in DSO to ensure efficient collection processes.
Overall, while the DSO for Worthington Industries Inc has fluctuated over the past two years, the company should strive to maintain a DSO at a level that is optimal for its industry and business model, as a lower DSO generally signifies more efficient accounts receivable management and healthier cash flow.
Peer comparison
Feb 29, 2024