Berry Global Group Inc (BERY)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.08 | 8.16 | 7.37 | 7.96 | 5.82 | |
| DSO | days | 45.20 | 44.75 | 49.53 | 45.85 | 62.74 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.08
= 45.20
To analyze Berry Global Group Inc's days of sales outstanding (DSO), I calculated the DSO for the years ending on September 30, 2023, October 1, 2022, October 2, 2021, September 26, 2020, and September 28, 2019. The DSO measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting cash from customers more quickly, which is a positive indicator of efficient accounts receivable management.
The DSO for September 30, 2023, was 45.19 days, representing a slight increase compared to the previous year's DSO of 44.75 days on October 1, 2022. This may indicate a slight delay in the collection of sales revenue in 2023 compared to 2022.
However, the DSO for September 30, 2023, of 45.19 days was lower compared to the DSO of 49.52 days on October 2, 2021, and 62.74 days on September 28, 2019. This trend suggests an improvement in the company's accounts receivable collection efficiency over the years.
Overall, while there was a slight increase in DSO from 2022 to 2023, the company has shown a favorable trend of decreasing DSO over the longer term, indicating improved efficiency in collecting sales revenue.
Peer comparison
Sep 30, 2023