Woodward Inc (WWD)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.96 | 5.74 | 6.29 | 6.63 | 6.38 | |
| DSO | days | 52.45 | 63.61 | 57.99 | 55.09 | 57.18 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.96
= 52.45
Woodward Inc's Days Sales Outstanding (DSO) is a measure of how efficiently the company collects its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, while a higher DSO suggests that the collection process is taking longer.
Over the past five years:
- In 2024, Woodward Inc's DSO decreased to 52.45 days from 63.61 days in 2023, reflecting an improvement in the collection of accounts receivable.
- In 2023, the DSO was relatively high at 63.61 days, indicating a longer time taken to collect payments compared to the preceding years.
- In 2022, the company's DSO was 57.99 days, showing a slight improvement from 2021.
- In 2021, the DSO was 55.09 days, which was lower than in 2020, indicating better collection efficiency.
- In 2020, the DSO was 57.18 days, suggesting a longer collection period compared to 2021.
Overall, Woodward Inc has shown some variability in its DSO over the years, but the recent trend indicates an improvement in collecting accounts receivable more efficiently. It is crucial for the company to continue monitoring its DSO to ensure timely collection of payments and maintain healthy cash flow levels.