Woodward Inc (WWD)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.74 | 6.29 | 6.63 | 6.38 | 6.73 | |
| DSO | days | 63.61 | 57.99 | 55.09 | 57.18 | 54.20 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.74
= 63.61
To analyze Woodward Inc's days of sales outstanding (DSO) over the past five years, we can observe a consistent increase in the DSO from 2019 to 2023.
In 2019, the DSO stood at 75.47 days, indicating that, on average, it took Woodward Inc approximately 75.47 days to collect its accounts receivable. Over the subsequent years, this figure rose steadily to 82.91 days in 2020, 86.97 days in 2021, 94.23 days in 2022, and 95.68 days in 2023.
The increasing trend in DSO suggests that Woodward Inc's collection of accounts receivable is taking longer over time. This might indicate potential issues with the company's credit and collection policies, as well as potential liquidity challenges if the trend continues. It's essential for the company to closely monitor this trend and take steps to ensure efficient management of its accounts receivable to maintain healthy cash flow and overall financial stability.