Worthington Industries Inc (WOR)
Days of sales outstanding (DSO)
| Nov 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.90 | 6.84 | 9.72 | 3.38 | 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 | |
| DSO | days | 61.88 | 53.39 | 37.55 | 107.95 | 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 |
November 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.90
= 61.88
Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO is preferred as it signifies faster collection of receivables, thereby improving the company's cash flow and liquidity.
In the case of Worthington Industries Inc, the DSO trend reveals fluctuations over the period from November 30, 2019, to November 30, 2024. The DSO values ranged from a low of 37.55 days on February 29, 2024, to a high of 107.95 days on November 30, 2023. These fluctuations suggest varying effectiveness in managing accounts receivable and collecting payments from customers.
It is worth noting that a significant increase in DSO, as observed in the period up to November 30, 2023, can indicate potential issues with credit control, collection methods, or a deterioration in customer credit quality. Conversely, a decrease in DSO can be a positive indicator of improved efficiency in managing receivables and timely collection of payments.
In the most recent period, the DSO decreased to 61.88 days on November 30, 2024, indicating a possible improvement in the company's accounts receivable management. However, further monitoring of DSO trends is recommended to assess the effectiveness of Worthington Industries Inc in managing its accounts receivable and optimizing cash flow operations.
Peer comparison
Nov 30, 2024