ConAgra Foods Inc (CAG)

Days of sales outstanding (DSO)

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Receivables turnover		13.33	12.74	12.03	12.20	12.44	12.32	12.84	14.51	12.91	12.07	11.14	12.94	13.59	13.56	11.77	13.59	12.41	11.71	10.71	12.57
DSO	days	27.37	28.66	30.34	29.91	29.34	29.63	28.43	25.15	28.28	30.24	32.77	28.20	26.85	26.91	31.00	26.85	29.42	31.17	34.08	29.05

May 26, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.33
= 27.37

Days Sales Outstanding (DSO) is a financial ratio that indicates the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO value suggests that the company is efficient in collecting receivables, while a higher value may indicate potential issues with collecting payments promptly.

Analyzing the DSO trend of ConAgra Foods Inc over the past few quarters, we observe fluctuations in the metric. In the most recent quarter, ending May 26, 2024, the company's DSO stood at 27.37 days, showing a slight improvement from the previous quarter's DSO of 28.66 days on February 25, 2024. This decrease could suggest that ConAgra Foods has been successful in managing its accounts receivable more efficiently during this period.

Looking further back, we see that the company experienced some variability in its DSO figures, with values ranging between 25.15 days (August 28, 2022) and 34.08 days (August 25, 2019) over the past few years. These fluctuations could be influenced by factors such as changes in the company's credit policies, customer payment behaviors, or the overall economic conditions impacting the industry.

Overall, while ConAgra Foods Inc has shown some variability in its DSO over the quarters, the recent decrease in DSO may indicate improvements in the company's receivables management process. However, it would be beneficial for investors and analysts to continue monitoring this ratio in conjunction with other financial metrics to gain a more comprehensive understanding of the company's financial health and operational efficiency.