Worthington Steel Inc (WS)
Days of sales outstanding (DSO)
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.05 | 7.20 | — | 7.75 | — | |
| DSO | days | 51.78 | 50.73 | — | 47.08 | — |
May 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.05
= 51.78
The analysis of Worthington Steel Inc.'s Days of Sales Outstanding (DSO) indicates fluctuations over the specified period. As of May 31, 2023, the DSO was approximately 47.08 days, reflecting the average span it takes for the company to collect receivables after a sale. By May 31, 2024, the DSO increased slightly to approximately 50.73 days, indicating a modest elongation in the collection period. This suggests that the company experienced a slight slowdown in receivables collection efficiency during this interval.
Looking forward to May 31, 2025, the DSO further increased to approximately 51.78 days. This continued upward trend indicates a gradual extension in the average days required to collect outstanding receivables. The incremental increases over the analyzed periods could imply a potential deterioration in collection processes or changes in customer payment behaviors, possibly reflecting shifts in credit terms or customer creditworthiness.
The absence of data points for August 31, 2022, and August 31, 2023, precludes the analysis of trends specific to those dates, but the observed data from May 2023 onward suggests a trend toward lengthening collection periods. This pattern warrants attention as extended DSO may impact the company's cash flow and liquidity position if persistent. Overall, the trend indicates that clients may be taking marginally longer to settle their accounts, potentially influencing the company's working capital management.
Peer comparison
May 31, 2025