ConAgra Foods Inc (CAG)

Days of sales outstanding (DSO)

Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 May 26, 2024 Feb 29, 2024 Feb 25, 2024 Nov 30, 2023 Nov 26, 2023 Aug 31, 2023 Aug 27, 2023 May 31, 2023 May 28, 2023 Feb 28, 2023 Feb 26, 2023 Nov 30, 2022 Nov 27, 2022 Aug 31, 2022 Aug 28, 2022 May 31, 2022
Receivables turnover — — — — 13.72 — 13.22 — 12.09 — 12.07 — 12.82 — 12.92 — 13.01 — 14.54 —
DSO days — — — — 26.60 — 27.61 — 30.18 — 30.23 — 28.46 — 28.26 — 28.05 — 25.10 —

February 28, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Days of Sales Outstanding (DSO) is a key financial ratio used to evaluate how efficiently a company is managing its accounts receivable. It indicates the average number of days it takes for a company to collect payment from its customers after making a sale.

Analyzing the DSO trend of ConAgra Foods Inc based on the provided data, we observe the following:

- In August 2022, the DSO was 25.10 days, indicating that ConAgra was able to collect payments relatively quickly from its customers.
- The DSO increased to 28.05 days in November 2022, suggesting a slight delay in collecting receivables compared to the previous period.
- Subsequently, in February 2023, the DSO further increased to 28.26 days, indicating a continuing trend of slower collection of payments from customers.
- The trend continued with DSO reaching 30.23 days in August 2023, signifying a further delay in collecting receivables.
- However, in November 2023, the DSO decreased slightly to 30.18 days, indicating a possible improvement in the collection process.
- The DSO decreased to 27.61 days in February 2024, suggesting a more efficient collection of accounts receivable.
- This trend continued with a further decrease in DSO to 26.60 days in May 2024, indicating a positive trend in collecting payments from customers.

Overall, the fluctuating trend of the DSO can indicate the effectiveness of ConAgra Foods Inc in managing its accounts receivable and may provide insights into the company’s cash flow management and customer credit policies.