Bellring Brands LLC (BRBR)

Days of sales outstanding (DSO)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Receivables turnover		9.91	7.91	12.00	11.89
DSO	days	36.83	46.12	30.41	30.69

September 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.91
= 36.83

To analyze Bellring Brands Inc's days of sales outstanding (DSO), we can look at the trend over the past five years. DSO measures the average number of days a company takes to collect its accounts receivable, indicating how quickly it converts its sales into cash.

In 2023, the DSO stands at 36.83 days, showing an improvement from the previous year's 46.12 days. This suggests that the company has been more efficient in collecting its accounts receivable, which is a positive trend for its cash flow and working capital management.

Comparing the 2023 DSO to that of 2021, we notice an increase from 30.41 days to 36.83 days, indicating a slowdown in the collection of receivables. This could be a concern as it may signify potential issues with customer credit quality or the company's collection processes.

On a broader view, the DSO has fluctuated over the past five years, with the highest level in 2022 (46.12 days) and the lowest in 2019 (29.22 days). This variability could indicate changes in the company's credit policies or the payment behavior of its customers.

In conclusion, while the recent decrease in DSO is a positive development, the fluctuation over the years warrants further investigation into the company's credit and collection practices to ensure efficient working capital management and cash flow optimization.